China IC industry battles slowdown
|
The mad rush to invest on the emerging Chinese semiconductor/electronics industry is slowing down. The fever has been in fact cooling since a year ago, well before the credit crisis hit the global market.
This is a result of "a hangover from the huge euphoria [of investors] over the past several years," said Ken Tsang, managing director at The Hina Group, an investment banking and private equity firm.
However, many industry experts put the blame squarely on Chinese domestic chip companies.
The top three Chinese IC vendors—Actions Semiconductor, Vimicro and Spreadtrum Communications—have been unable to build enough force to blow up anything substantial in the global market, suggesting that China’s seemingly infinite potential was just so much fireworks.
The three companies’ stocks have spectacularly fizzled. Vimicro’s stock dove to $1.88 last week, while Actions’ sank to $1.44 and Spreadtrum’s to 8 cents.
|
|
Wednesday 10 December, 2008 02:41 PM |
Save This Page