Silicon Valley - Moving Up The Value Chain

Silicon Valley is the southern part of the San Francisco Bay Area in Northern California,United States. The term originally referred to the region's large number of silicon chipinnovators and manufacturers. Despite the development of other high-tech economic centers throughout the United States, Silicon Valley continues to be the leading high-tech hub because of its large number of cutting-edge entrepreneurs, engineers and venture capitalists.

Since the early twentieth century, Silicon Valley has been home to a vibrant, growing electronics industry. The industry began through experimentation and innovation in the fields of radio, television, and military electronics. Stanford University, its affiliates, and graduates have played a major role in the evolution of this area.

It was in Silicon Valley that the silicon-based integrated circuit, the microprocessor, the microcomputer, among other key technologies, were developed, and has been the site of electronic innovation for over four decades, sustained by about a quarter of a million information technologyworkers. Silicon Valley was formed as a milieu of innovations by the convergence on one site of new technological knowledge; a large pool of skilled engineers and scientists from major universities in the area; generous funding from an assured market with the Defense Department; the development of an efficient network of venture capital firms; and, in the very early stage, the institutional leadership of Stanford University.

Although semiconductors are still a major component of the area's economy, Silicon Valley has been most famous in recent years for innovations in software and Internet services. Silicon Valley has significantly influenced computer operating systems, software, and user interfaces.

Eventually, Silicon Valley is known all the high-tech businesses in the area; it is now generally used as a metonym for the high-tech sector. Software, Tools and other IT products are produce here replacing the traditional manufacturing facilities.

(from Wikipedia)

Malaysian Investment Development Authority

On 31 Mac 2010, Malaysian Prime Minister has announce that Malaysian first point of contact to investor, Malaysian Industrial Development Authority (MIDA), an agency operate under Ministry of International Trade nad Industry (MITI) is announced to be corporatised and will be given more 'authority' to run the investment promotions activities. New name also has been suggested, Malaysian Investment Development Authority to stay with MIDA acronym.

With this exercise, MIDA will have more power to do promotion without to deal with lengthy bureaucracy processes. As corporate body, MIDA will have the capability move together with EDB of Singapore, BOI Thailand and others. The structure will be determine later and will be completed by end of year. With this announcement, MIDA will be more leaner and can deliver better performance.

What Malaysia Need?

We have been focusing on new and emerging technology on electronics Industry, but we forgot to look back at why those 'giant' gain rank in this industry. As such:

1. No Anchor.

I would like to take 2 example, Japan and Korea. Japan has many electrical appliances companies that produce variety of products. As we all know, electrical products is combination of technology from electronics, chemical and mechanical. Sharp start their business producing mechanical pencil, then move to electronics calculator. Later they started to produce TV and other electrical products. Since they own the products, they have the knowledge and capability to go through the market.

In Korea, Samsung. Why they can design high tech products is the same reason as above. They own the technology and they can control the market. In Malaysia, we do have electrical appliances manufacturer as such Pansonic, ECE and Khind. In fact, Pansonic is one of the top brand in India. That means we have the capability. Most of Malaysian brand company, they intend to produce existing products by 'copying' other giant. Less R&D effort to be made. No investment in Pilot Plant. As such, to sustain in the market is quit competitive. Maybe we can compete in 2nd tier market, but don't we have dreams to be known and stand beside Sony, Sharp, Samsung and others. If we have the man power, where should they contribute?

2. Human Capital

We have thousands of high quality engineers. But why our technology is still behind. Nowadays, those engineers were attracted to MNCs which can pay higher, and left the last qualifier to operate in local companies. Some others move to Singapore due to currency exchange. Universities should go through their 'inputs' and focus how train they graduate to be high achiever. Take MIT for example. Giants around the world acknowledge them. What about UTM, UKM, UM, UiTM, MMU, UIA, UniSEL and others? Government should encourage Universities and Higher Education Institutions to work together with these companies. We don't want high result graduate but unable to apply it in the market.

3. Focusing on New Investment only

To develop more technology, investment in high tech is a much. As such, not only we can focus on New investors to knock our door, why don't we ask those existing companies to move up the value chain. New incentives and promotion should be put to those who want to develop and invest in Research and Development. MiGHT, an agency under MOSTI has take thoce lead by promoting the Innovation award. Let see where it will lead in 5 years time.

Future of Green Technology

Nowadays, Green Technology is a talk around the world. I'll provide some of current technology related to Green Technology.

1. Solar Power - Lead by 5 Mega solar company, solar power is one of the new resource for green technology. With abundant supply of sun rays, the usage of other option of electricity generation will be reduce. Currently, the best efficiency recorded for solar panel is up to 33% of its penetration can produce energy.

2. LED - The high luminance technology can replace the conventional light bulb and florescent tubes in the light industry. The raw material is basically 'sand' and power consumption is much more lower.

3. Water - 2/3 of Earth is cover with water. New research has been undertook around the world to use water as the alternative power supply. Forecast, this technology should be release into the market within this decade.

4. Power Inverter - Technology that can regenerate energy while using them. More and more new products in the market is equipped with such technology to support the current concern.

Reduce, Reuse, Recycle.

Flip-Chip Packaging Becomes Competitive

Sally Cole Johnson, Contributing Editor -- Semiconductor International, 5/1/2009

Looking back 15 years ago, nearly everything was wire bonded. Today, flip-chip packaging is taking over. The basic flip-chip concept is to take a chip, place conductive bumps on the connection points, flip it over, put it face down and directly attach it to the circuit. Flip-chips eliminate excess packaging, while providing highly desirable benefits such as miniaturization, high-frequency operation, low parasitics and a high I/O density.

Flip-chips can be found in nearly every hot consumer gadget from cell phones and pagers to MP3 players and digital cameras. In the server space, virtually all logic modules are flip-chip packaged. And most ASICs, gaming, graphics processors, chipsets, field-programmable gate arrays (FPGAs) and digital signal processors (DSPs) are now also flip-chip modules.

The cost of gold bonding wire has been on the rise the past few years — making flip-chip even more appealing. "If we look at the cost two to three years ago, flip-chip was inherently more expensive," said Raj Pendse, vice president of flip-chip and emerging products at STATS ChipPAC (Singapore). "Flip-chip substrates typically cost two to three times the amount of a wire bond substrate, but the rising gold costs have evened out the differential in package costs. The flip-chip is becoming more cost-effective over a broader range of applications. In the past, it was used in the 1000 pin count range. It's becoming cost-effective in the 200–700 pin count range.".

2009 New Market - LED and Solar

For 2009, LED and Solar Module is predicted to get a higher demand. Both of the items can save energy, by using low power and by producing power with help of nature, have been popular since the awareness of environmental issues.

LED - Light Emitting Diode. It can be classed into several types. Currently, tycoons all around the worlds is racing to produce cheapest, brightest, safest and most efficient LED ever. In conjunction with the "Banning the Incandescent Light Bulbs" campaign around the world, LED is the best solution. Consumer can regain their cost just not more then 2 years by saving the energy only. Plus, the LED is known for long lasting. Usually, a LED can even last for up to 15 years.

Solar Modules. This technology is known for many years before but only have further developed around 5 years back. This technology is known for safe power generator/producer. In some country, power from solar panels are sold back to the government to help reduce the unhealthy power generation. Many 'Giants' has establish in this field and mostly from Europe. Sun is our unlimited source of power. Via using solar energy, ones can save more money while save the earth.

Malaysia Electronics Industry 2008

The effect of world recession has arrived to Malaysia. The most affected industry are E&E seen most of its player is from the centre of the crisis, USA.

Starting from early 2008, many company start having problem with supply and demand. Since the collapse of Lehman brothers, investors became more careful in what they invest in. Follow by the decrease of value for 3 automotive tycoon in August. In November, Citibank has declared 50% drop of its share in the market. More issues grow even the Presidential Election has over. Can Obama change the situation (as per his campaign)?

In Malaysia, the country was first shocked by the shut down of a toy company in Penang, Nikko Electronics. More then 900 workers is unemployed. The latest is, Western Digital in Sarawak has seizzed its operation and more then 1500 workers is out of work.

Many economist predict that the worst is still not here. 2009 was said to be the peak of the slowdown. What it has to do with us? Well, government got income from these MNCs. They were source of income for our nation. Without them, the unemployment rate will rise, and the national income will go down.