Junko Yoshida, EETimes
6/2/2015 06:25 PM EDT
In the eyes of Western investors, the semiconductor sector is a lousy business. In contrast, China sees chip vendors, especially Chinese chip vendors, as worthy of big investment. Why a huge gap?
If recent big mergers like NXP-Freescale, Avago-Broadcom and Intel-Altera are any indication, the only way for chip companies to keep their valuations up is through more consolidation. The mantra is to get bigger, while shedding some perceived fat along the way. In the West, the semiconductor sector is — in the eyes of investors — a lousy business.
In stark contrast, Chinese semiconductor firms are perceived as solid, stable and reliable, not only by the China's central government but also local government and private equity investment funds inside China.
Why such a huge gap?
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