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Analysis: Chengdu takes on hi-tech challenges

Posted: 23 Jun 2010 ?? ?Print Version ?Bookmark and Share

Keywords:Chengdu electronics market? software? LCD? IC-packaging? wafer fab?

IT, software boost
Besides ICs, Chengdu must develop other industries, namely the OEM/ODM segment, said Jim Walker, an analyst with Gartner Inc. In fact, there are fewif anyOEM/ODM companies that are manufacturing in the region.

Many OEMs have their products built in other locations in China. Taiwan's Foxconn is supposed to set up a factory in Chengdu, which will create 100,000 jobs. But to date, Foxconn has not moved forward with the project amid troubles with the company.

Chengdu is late to renewable energy, but it is looking at solar and wind power. Earlier this year, the first-phase project of Sichuan Yuanli Optics and Electronics Center in Chengdu was put into operation. "Chengdu has carried out an ambitious plan to make the Chengdu Modern Industrial Park the largest LED production base in western China," according to the Chengdu government. "The park has attracted a dozen of LED projects."

Chengdu has made the most progress in IT and software. It boasts the Chengdu Tianfu Software Park Co. Ltd, a subsidiary of Chengdu Hi-tech Investment Group. Tianfu Software Park has completed two phases, which consists of 1.1 million-square-meters. Two other phases are on the drawing board.

As one of the 11 national software bases in China, Chengdu is said to have up to 1.65 million technicians, and 130,000 software practitioners, according to the Chengdu Tianfu Software Park.

For the past year, a large number of enterprises, including Accenture, DHL, Maersk, Alibaba, Manulife, Amazon, and Wipro, selected Chengdu Tianfu Software Park to implant their back-offices, R&D centers or development centers. To help the multinationals, the park has set up a "platform" of services, said Victor Jansson, vice president of the park.

Time will tell if Chengdu can live up to its promises and indeed become an IT/electronics hub in China. Some say it will take years. Others say Chengdu is on the right path and will emerge sooner than later. In terms of Chengdu's development, "I don't see any roadblocks" in the future, said Intel's Martin.

- Mark LaPedus
EE Times


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