Why China's Recent Tech Deals Should Make the US Nervous
I was in Shenzhen, Prc, concluding month for the CE China trade show, a region all-time known as abode to Foxconn and other factories that build consumer products, including the Apple iPhone and iPad.
I went to encounter how the Chinese will use their manufacturing magic to virtual reality headsets and if they tin can produce cheap devices with broad entreatment whatsoever fourth dimension before long. I was fabricated aware of at least three new VR headsets that could get in equally early equally this holiday flavour, still tethered to a PC, but $200 to $300 cheaper than rival devices from Oculus or HTC.
Nevertheless, the Chinese are non content with but creating cheaper versions of today's high-end VR headsets. They want to innovate in this space and create VR glasses that look more than like a set of bodily glasses. One such product I saw at the bear witness came from a company called Dlodlo (pronounced dodo).
The Dlodlo Glass V1 VR spectacles are nevertheless a prototype, only the CEO said his company is making major design strides and expects the device to be on the market past year's end. I checked them out on the show flooring, and could meet they are indeed very early on prototypes. I'm skeptical a working model volition be bachelor soon, merely I give Dlodlo credit for trying to push button VR into more than acceptable user territory.
At the cease of my trip I got give-and-take of deal that could benefit the Chinese marketplace and AMD, just spell problem for U.s.a. tech companies: a new joint venture betwixt AMD and THATIC, an investment consortium controlled by the Chinese University of Sciences. The two volition produce silicon for servers, which adds a new twist in China's increasing technological capabilities.
For decades, Chinese leaders have wanted to produce and control the core intellectual property for building phones, PCs, servers, chips, and the other applied science that sits at the eye of the digital globe. Companies like Huawei show that it'due south possible to break into international markets and compete confronting more than established brands such as Cisco with homegrown engineering.
In mid-2008, I met with some Chinese tech officials in Beijing who said they wanted to develop their ain standards considering they were frustrated that they had to pay IP royalties on things they manufactured, like DVD players.
Early on they tried to brand their own processors, and that did not work. And so they tried to get Western firms to manufacture in Communist china and gave them incentives such equally free factories and tax breaks in order to share some of the IP profits. This worked but to a point. But last May, HP sold 51 per centum of its server and storage group to People's republic of china's Tsinghua, which pretty much guaranteed a controlling interest and IP profits.
Also, Western Digital formed a joint venture with Unisplendour to sell storage arrays, and IBM created a articulation venture with PowerCore to produce server chips on IBM'south Power Compages. These ventures give the Chinese companies more than control over the engineering science and their ability to create homegrown products across the board.
With the AMD-THATIC deal, Chinese companies now have access to expertise to make almost anything, from mobile technology and storage to networking and ARM processors. This is not necessarily good news for US manufacturers. These types of deals only increase the possibility that Chinese companies will buy just almost everything they need.
About Tim Bajarin
Source: https://sea.pcmag.com/consumer-electronics-reviews-ratings-comparisons/11284/why-chinas-recent-tech-deals-should-make-the-us-nervous
Posted by: govanloded1954.blogspot.com
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