Last Saturday, I had an opportunity to discuss about the current model of company in both east and west. It is started when we knew that 2 of the biggest companies in Europe will fire most of their employees due to its decreasing revenue. Some people said that it is because of the economic crisis faced by Europe and the emerging of the technology company in Asia. It could make a conclusion that the western companies loss its touch so it could not catch up the significant rising of the eastern company’s business and technology. We were questioning whether it is really the reason or not and a little discussion is made.
As we knows, in the early stage of the electronics industry, companies from Europe and US began to start their investment and research on these area. They tried to develop a robust electronics devices such as communication technologies, digital computing electronics (processor), and instrumentation. They also designed the IC technology that allow the growth of IC development satisfies the moore’s law, which mentions that the performances of IC would be twice each year. They are really working on the quality and put the knowledge and innovation as driven.
Started by Japan, the industry of Asia grown significantly since the end of the World War II. Japan and the other Asia country drew ambitious plan to meet the task of industrialization and modernization. They found an opportunities in one of the emerging technologies in that era, electronics.
Although working on the same fields, most of Asia companies put themselves in different perspective, which fortunately brought them to their position now as one of the leader market in the world. They realized that the electronics those day were very expensive for the customer. They put it as a company opportunities to provide low cost electronics for them. It is adapted in companies like Samsung, Toshiba, and Huawei. This method is also used to conquer the automotive industry nowadays.
So, does it mean that the western companies will lose the markets? In my opinion, no. They both have different market. Although for some electronics product it seems that now Asia conquer the market, the western company also adapt. They know that the low-cost strategy is very useful for it, but they also don’t want to lose their “robust” strategy. They keep enhancing their product toward robustness and innovation, for example Apple, Microsoft, and Rohde-Schwarz. They produce product with the quality that is hardly to imitate. Some of the company also changing their focus when the previous technology is already mature, for example Philips who diverse their focus from lighting to biomedical equipment. Those product has to be strong and accurate, and it is the western company competences and is hard for eastern company to catch up.
For a conclusion, although the eastern company nowadays seems to take over the market of electronics in the perspective of the customer, the western company still plays their important role in this area of technology. The western company put the robustness and innovation as the main focus of their company and the eastern company put mass product and low cost strategy. Both are very challenging and both are working to improve the quality of life. Without both of them, we could not have technology like we have nowadays.
“The complexity for minimum component costs has increased at a rate of roughly a factor of two per year. I believe that such a large circuit can be built on a single wafer.”
Gordon Moore