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Fabless companies to shift from Silicon Valley to Asia

Posted: 11 Oct 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Silicon Valley? Asia? Plug and Play Center? fables semiconductor? Rick Merritt?

Silicon Valley is still growing as a hot spot for venture capital startups, but it is slowly losing its position as the center of gravity for the fabless semiconductor sector. That's the view of Saeed Amidi, an investor who opened the Plug and Play Technology Center, a facility he hopes will attract as many as 100 early-stage tech companies.

"The Mecca of the technology industry is still Silicon Valley even though there is a lot of R&D moving to places like Israel and Bangalore" India, said Amidi. "This is still the place to be if you still want to work on the edge of mobile media," he said.

But in terms of fabless chip makers the Valley's role "will shift to being an architectural and executive center. I'm not a fabless semi guy, but this is what I have observed in the last six months," he added.

Amidi noted that Asia is now a larger chip market than the United States, and it already has most of the foundries and assembly plants. "Realistically, many fabless companies will move to the Far East as well."

The Plug and Play Center, which opened in January, is 65 percent full with 55 companies in residence including eight fabless chip design companiestwo started by former Intel executives. Most have small staffs of between 10 to 15 employees here. Amidi hopes to attract as many as 20 fabless chip companies to the center.

- Rick Merritt
EE Times

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