Former Acer chief executive and president Gianfranco Lanci’s recent remarks about Taiwan’s brain drain, software engineers specifically, has sparked a sharp debate about the link between the nation’s brain drain and the globalization of local technology companies.
Lanci, in a recent interview with the Wall Street Journal’s “All Things Technology” blog, defended his departure by saying that he was pushing Acer to become a “mobile-focused and more global” company through increased investment, including boosting the number of engineers from 400 to 1,000. He also said the professionals Acer needed were not available in Taiwan.
It is unthinkable that a world-class company such as Acer could develop products with only 400 engineers. Taiwanese companies do need to invest more in engineers to improve their weakness in software and hardware integration, overhauling the old mindset of cutting costs to squeeze profits though manufacturing unwieldy gadgets, or offering replicas of popular devices such as Apple’s iPad.
However, his point that Taiwan lacks the qualified personnel to bring software and hardware components together to make a remarkable electronic device is questionable.
The success of local smartphone brand HTC Corp is an example. HTC manufactures its phones mostly in factories in Taiwan and, as of March 31, a quarter of its total 8,948 employees were involved in research and development (R&D).
However, it is also true that technology companies can never hire enough R&D talent. HTC plans to add 1,000 more this year from Taiwan, which also indicates that the country’s personnel pool has not dried up. Even multinational companies like US microprocessor maker AMD promoted its locally hired Andy Tseng (曾銘仁) to global vice president.
A company can have countless engineers and still not create products that wow the public. With strong technological skills, local firms are squeezing as many features into one single product as possible, but often ignoring which functions help users better manage their daily lives. They do not realize that sometimes less is more.
Take Internet star Facebook, a company that does not have a large R&D component, but had attracted investors’ attention even before it went public.
What Taiwanese electronics companies lack is a deeper understanding of what consumers want. Corporate executives may be inspired by watching the blockbuster film The Social Network, which tells how Facebook founder Mark Zuckerberg built the social network empire — originally to cater to college students’ need to connect with their friends.
Short of vision, some Taiwanese firms are becoming copycats. Playing it safe, these companies are following their global rivals’ steps by selling similar products, but at lower prices. This is a practice they are satisfied with it as long, as they do not lose money.
Numerous industry analysts expect a number of iPad-like products to be released onto the market later this year, as they try to compete with Apple’s 80 percent grip on the global tablet market.
It goes without saying that Taiwanese electronics companies have to remodel their business strategies. The prevailing approach of making fast money should be overturned. This is something that every corporate executive should be thinking about.
When Intel and Microsoft lost their dominance to the new mobile world, there was a need for their local partners to revamp their outdated business models. It takes money and courage to embrace the new world, but if Taiwanese firms do not do it now, they will soon lose their competitive edge in the ever intensifying mobile Internet market.
The past few months have seen tremendous strides in India’s journey to develop a vibrant semiconductor and electronics ecosystem. The nation’s established prowess in information technology (IT) has earned it much-needed revenue and prestige across the globe. Now, through the convergence of engineering talent, supportive government policies, an expanding market and technologically adaptive entrepreneurship, India is striving to become part of global electronics and semiconductor supply chains. Indian Prime Minister Narendra Modi’s Vision of “Make in India” and “Design in India” has been the guiding force behind the government’s incentive schemes that span skilling, design, fabrication, assembly, testing and packaging, and
Singaporean Prime Minister Lee Hsien Loong’s (李顯龍) decision to step down after 19 years and hand power to his deputy, Lawrence Wong (黃循財), on May 15 was expected — though, perhaps, not so soon. Most political analysts had been eyeing an end-of-year handover, to ensure more time for Wong to study and shadow the role, ahead of general elections that must be called by November next year. Wong — who is currently both deputy prime minister and minister of finance — would need a combination of fresh ideas, wisdom and experience as he writes the nation’s next chapter. The world that
Recently, China launched another diplomatic offensive against Taiwan, improperly linking its “one China principle” with UN General Assembly Resolution 2758 to constrain Taiwan’s diplomatic space. After Taiwan’s presidential election on Jan. 13, China persuaded Nauru to sever diplomatic ties with Taiwan. Nauru cited Resolution 2758 in its declaration of the diplomatic break. Subsequently, during the WHO Executive Board meeting that month, Beijing rallied countries including Venezuela, Zimbabwe, Belarus, Egypt, Nicaragua, Sri Lanka, Laos, Russia, Syria and Pakistan to reiterate the “one China principle” in their statements, and assert that “Resolution 2758 has settled the status of Taiwan” to hinder Taiwan’s
As former president Ma Ying-jeou (馬英九) wrapped up his visit to the People’s Republic of China, he received his share of attention. Certainly, the trip must be seen within the full context of Ma’s life, that is, his eight-year presidency, the Sunflower movement and his failed Economic Cooperation Framework Agreement, as well as his eight years as Taipei mayor with its posturing, accusations of money laundering, and ups and downs. Through all that, basic questions stand out: “What drives Ma? What is his end game?” Having observed and commented on Ma for decades, it is all ironically reminiscent of former US president Harry