A possible shortcut for China to compete with Samsung and Intel
China has plenty of money, but it is currently behind in LCD and microprocessor technologies. To quickly catch up, China will need to expand the China-Taiwan ECFA (e.g. free-trade agreement) and attain Taiwan's assent for mainland companies to acquire or invest heavily in Taiwanese companies. At a minimum, China needs to achieve a licensing agreement of technology transfer from Taiwanese companies to mainland companies.
To achieve near-parity with Samsung, China can form a joint-venture, alliance, or outright buy Taiwan's AU Optronics (see news article below). Also, to acquire the core technologies to compete with Intel, China will have to make a move on Taiwan's VIA (see second news article below). China can make things interesting for Samsung and Intel by acquiring Taiwanese companies that possess LCD and microprocessor technologies.
The road to China's true economic superpower lies through Taiwan.
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LG [Display] LCDs May Be Banned Worldwide
6:50 PM - May 3, 2010 - By Kevin Parrish - Source : Tom's Guide US
A patent infringement case may block the sale of certain LG LCD panels.
ZoomComputerworld reports that Taiwan-based AU Optronics (AUO) is trying to halt the import and sale of LG Display LCD panels across the globe. If an injunction is successful, this could ultimately hurt consumers and their choice of LCD options, as LG currently commands over a quarter of the LCD panel market.
Over the past three and a half years, LG and AUO have been in a legal scuffle in regards to patents covering material and processes used in making LCD panels. Friday marked the end of the long, multifaceted battle, with AUO emerging as the winner based on LG's inability to prove that the rival company infringed on its LCD patents.
But in February AUO filed a counter-suit and won. Judge Joseph J. Farnan Jr. said in a 77-page verdict that AUO provided enough evidence to show that LG literally infringes on patents asserted by AUO--LG was unable to prove otherwise. Now AUO is warning consumers not to purchase 'unauthorized infringing products from LG for sale or use in the U.S. without the need for further court action.'"
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VIA Technologies (TWSE: 2388) is a
Taiwanese manufacturer of integrated circuits, mainly motherboard chipsets,
CPUs, and memory, and is part of the Formosa Plastics Group. It is the world's largest independent manufacturer of motherboard chipsets. As a fabless semiconductor company, VIA conducts research and development of its chipsets in-house, then subcontracts the actual (silicon) manufacturing to third-party merchant foundries (such as TSMC.)
...
While
its Pentium 4 chipset designs have struggled to win market share, in the face of legal threats from Intel, the
K8T800 chipset for the Athlon 64 has been popular.
VIA has also continued the development of its
VIA C3 and VIA C7 processors, targeting small, light, low power applications, a market space in which VIA is successful. In January 2008,
Via unveiled the VIA Nano, an 11 mm × 11 mm footprint VM-enabled x86-64 processor, which debuted in May 2008 for ultra-mobile PCs.
[edit] Legal issues
On the basis of the IDT Centaur acquisition,[2] VIA appears to have come into possession of at least three patents, which cover key aspects of processor technology used by Intel. On the basis of the negotiating leverage these patents offered,
in 2003 VIA arrived at an agreement with Intel that allowed for a ten year patent cross license, enabling VIA to continue to design and manufacture x86 compatible CPUs. VIA was also granted a three year grace period in which it could continue to use Intel socket infrastructure."
"The first
64-bit, superscalar, speculative out-of-order processors in VIA's x86 platform portfolio,
VIA Nano processors have been specifically designed to revitalize traditional desktop and notebook PC markets, delivering truly optimized performance for the most demanding computing, entertainment and connectivity applications, including Blu-ray Disc HD video playback and the latest PC games, such as Crysis. The VIA Nano processor family leverages Fujitsu's advanced 65 nanometer process technology forVIA Nano logo enhanced power efficiency, and augments that with aggressive power and thermal management features within the compact 21mm x 21mm nanoBGA2 package for an idle power as low as 100mW (0.1W), extending the reach of power efficient green and silent PCs, thin and light notebooks and mini-notes around the world."