Why China still can’t create the next Texas Instruments | Hacker News Reader

Why China still can’t create the next Texas Instruments

eetimes.com

60 pointscpeterso15 comments

This article demonstrates a problem I have seen with many companies over decades. Even TI didn't become what it became overnight. But everyone thinks they can instantly grow to become the next economic giant instantly.

That kind of thing can only happen when opening a new field, and even then it isn't a sure thing. And it helps to have a faddish consumer product, like a lot of the big startup successes of the past decade, though there is no real evidence yet of their long term success (Twitter, Facebook, Airbnb, and so on).

Anyone that is going to compete against established companies, in a difficult, technical field like chip design, is going to face a slow, grueling climb, if they manage to climb at all.

Thanks to news and media people have a false sense of "Overnight success". Which isn't realistic and in most cases possible. There is "overnight popularity", but not "overnight success".

I think that's what's throwing entrepreneurs off. Our failure to realize that:

1) Big things have small beginnings.

2) All things take time.

TI is an enormous risk-taker and has performed huge strategic game-changing shifts over the years, just like Motorola who it used to compete directly with and which became an entirely different company, too. TI used to have a typical 'hire and fire' reputation, which actually is what allowed it to perform these shifts - going so far as to abandon relatively new and incredibly expensive fabs and their workforces when needed. This type of MO is not compatible with the way how China finances, plans and operates its businesses.

Good point. A very good MIT Press book on this topic (I think it's this one: http://mitpress.mit.edu/catalog/item/default.asp?ttype=2&... but the cover is different; I'd say its still relevant if you don't have a good background in the topic), noted as of 1980 that TI managed to be successful through 4 or so generations of semiconductor technology starting with germanium transistors (following would be silicon ones, one or more generations of ICs including the ubiquitous first widespread TTL family; since then microprocessors and now specialized types of those).

This article is really kind of racist. Any country has a problem to create the next Texas Instruments, we're in a new paradgim. What we do know about China is that it, together with Africa, will be a hotspot for real growth (e.g improving life expectancy, standard of living and urbanization). Stop the China-bashing please, sometimes it's called for (e.g. human rights) but mostly it's just racist.

I actually doubt that you have read this article at all. Please read it first.

I have read it. Unfortunately I think it's the same prejudices again and again. Will China produce a company of TI's stature? - Probably not. Will any country produce a company of TI's stature? - Probably not. My comment was based on that, there is no need to always portray China a sub-par on innovation and technology. They're young in this field compared to the US but they're moving so fast that they continue to outrun industrialized countries in area after area. More biased and prejudiced articles will only make it easier for them to outrun everyonelse. That was my point, don't underestimate China because western journalists never get bored of the same message.

Chinese CEOs and professors are not Western journalists.

I also read that they were quoted but it does not change how the article is promoting the traditional western view of China as a country that can't do anything but cheap stuff and copies. Another possible direction the journalist could have taken the article would be: "Chinese CEOs outlines challenges to building the next TI". Hey, in Sweden where I'm from the CEOs talk about gender policies. I'd rather have them talking on building the next megacorp.

I think you're putting meaning into the OP that doesn't exist. I feel like we didn't read the same article.

1. The article covered a panel discussion by Chinese executives.

2. The subheadings may have been a bit in poor taste (and I'd say that making such a statement is a big stretch), but the content was mostly quotes. Very little analysis, only quotes that spoke for themselves.

3. The only item that even comes close to talking about cultural mindsets is item #4, and that statement is also a stretch.

It seemed to be a frank assessment from Chinese executives of what their weaknesses/shortcomings were, and why it's difficult to overcome those weaknesses/shortcomings. I saw nothing in there about culture, race, or anything like that. Again, only item #4 comes even close, and even that is a stretch. That's just a normal prisoner's dilemma situation.

I think the current top-voted comment read it correctly. The top-voted comment talks about secular reasons for corporate failure and difficulty, market forces, etc. That's what I read from the article also.

I'm overreacting saying the article is rascist, I got that now. :)

But I strongly believe the article portrays the Chinese in the traditional way as a land of copies and cheap stuff, when it's a country full of people dreaming to build the next TI.

I don't know much about China, sadly. Mostly, that's because of the language barrier.

I'm assuming that you know a lot about China. So, maybe you could link to some alternative views of China that are different from what we get from the western media. Like what's the startup scene like in China? What are the hot cities? Etc. I'm interested in it all.

Interested in china, dm me at twitter: @mik4el4ndersson

I didn't see this as picking on China. I thought the opposite. I thought they were saying that China is among the countries with the best chance of doing it, and then listed their specific shortcomings that are preventing them. And everyone has shortcomings.

A shrewd Chinese businessman could look at this list and find ways to improve his company's chances. Who else has that advantage right now?

I think it's a mistake to look at criticism as a bad thing. It's information we can use to improve things, and sometimes an outside view is very helpful.

Is "China-bashing" racism or nationalism ? There is more ethnic diversity within China than between southeast Asian countries.

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