Electronic industry in the 21st century: opportunities and challenges for China

Summary form only given. The global electronic industry has undergone tremendous changes in the past twenty years. This is especially true for the "computer" side. On the technology front, hardware and software performance and diversity are improving rapidly. This, together with fast dropping prices, has enabled continued expansion of the application spectrum. On the business front, specialization and globalization have gradually replaced vertical integration and localization. As usual, in this time of rapid changes, new leaders have emerged. Relative to the "computer" side, the "consumer electronics" side of the industry has been rather static. Japan, and to a lesser extent, Europe, have dominated the scene as core technology creators, product definers, and market leaders. Although we (Hong Kong and the Chinese Mainland's electronics industry) are built up a very significant manufacturing base, product entries, with a few exceptions, are mainly at the lower end, with the technology level, profit margin, and sales volume controlled by the leaders. As the digital world of the "computer" side encroaches on the "consumer" side, and many owners of core technologies are small companies, the global consumer electronics industry will undergo rapid changes in the coming decades. The only question is: who will be the winners (or new winners)? I believe we can be-with proper understanding, planning, investment, and implementation. In this talk, I'll describe and analyze some fundamental and intriguing changes in the technology and business models of the "computer" side of the industry, and how these changes will impact the "consumer electronics" side. I'll then outline possible approaches and plans that could take advantage of these changes and propel our industry to the leadership level amidst formidable challenges.