China: Cliff Keys interviews Eric Wong, Vice President of Sales

I interviewed Eric Wong, Vicor’s Vice President of Sales Asia Pacific to find out what was happening in the Chinese Market. There are so many news reports some of which can be misleading or confusing, that I thought it best to go direct to Vicor.

We hear a lot in the press about the growth in China. China’s growth has actually slowed but is still robust in worldwide terms. China is fast moving into the hi tech business, rather than the low end, high labour-intensive business for which it is traditionally known. I asked Eric to explain what is happening in his region.

1. What are the major developments that will have significant impact on China’s electronics industry in 2013?

Traditionally coal has been the power force in China, but new technology is now bringing a cleaner non-polluting source. Customers in China are now very aware of the need for energy efficiency.

2. Do you have new technology or products that can address this potentially highly lucrative market?

Vicor’s expertise in high density power solutions is gaining traction in the Chinese market for professional electronics rather than consumer.

3. How do you plan for maximizing business opportunities from these markets?

The areas of telecom 3G applications are well served by Vicor’s strong power portfolio. The government is under pressure to roll out 4G networks which is also suited to Vicor’s portfolio.

4. There has been a flood of companies opening up in China during the last few years. Does the increased competition make the market any less attractive?

Vicor is well placed to take advantage of the impending 4G infrastructure roll-out and has key competences in this area which are attractive to major customers in China.

5. What is Vicor’s strategy for the Chinese market? How do you plan to strike a balance between servicing the high growth in China and meeting the needs of your established customers elsewhere?

The server and telecom markets will be key drivers for China’s and Vicor’s future. With Vicor’s leading products and packaging, there will be significant growth in this region and Vicor is able to serve all these Tier 1 customers on a worldwide basis.

6. China’s goal by 2015 is to reduce energy consumption per unit GDP by 16%.
• 70% saving by re-organizing industry
• 30% saving by applying energy saving technology
What role can Vicor play in this?

Vicor’s products are a perfect fit for China’s drive for energy efficiency. There has been an unregulated system in place in China for many years. With a long history in improving efficiency and reducing the solution size, the company is well placed to support China in these goals.

7. The worldwide need for high performance telecom infrastructure equipment has meant that the faster data processors utilized consume more power and generate more heat that is very expensive to dissipate. How does Vicor contribute in this area and how important is telecoms to China?

Telecom is vital for China and there is increasing pressure to further expand the network and to install more efficient servers and base stations.

8. How do you see the opportunities and challenges of China’s electronic industry market changing over the next few years? Do you predict any major changes?

North America and Europe are leading the business for Vicor, but China is catching up and presents a huge business development opportunity for Vicor. China is in the process of consolidating many smaller industries into larger companies that will be well regulated in terms of energy efficiency.

9. Will China be different from the rest of the world?
China has its own standards in Telecom power and needs a highly focused strategy. Vicor will play to its core strengths in Computing, Telecom and Automotive. It is a unique region that has seen explosive growth and will need a well organized infrastructure to support this growth.

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