Download - Cross Boarder Innovation
Dr Raymond LeungExecutive VP of TDK Corp
Chairman & CEO of TDK China
Forum on Creating Synergy in Innovation and TechnologyHong Kong and Shenzhen
July 8, 2011
Cross Boarder InnovationCross Boarder Innovation
Reflections on 3 Decades of Hi-Tech Experience Reflections on 3 Decades of Hi-Tech Experience in the Pearl River Deltain the Pearl River Delta
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A tale of 3 successful technology companies incorporated over the last 3 decades
• SAE Magnetics (H.K.) Ltd. in SAE Magnetics (H.K.) Ltd. in
the early 80’sthe early 80’s
• Amperex Technology Ltd. at Amperex Technology Ltd. at
the turn of the millenniumthe turn of the millennium
• Altai Technology Ltd. in Altai Technology Ltd. in
20062006
5 driving forces of innovation5 driving forces of innovation
• Technology
• Markets
• Manufacturing
• R&D
• Talents
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• Founded in HK in 1980 focus on turn key solution for magnetic recording heads and Hard Disk Drives
• Acquired by TDK Corporation in 1986• The only independent manufacturer for
magnetic recording heads– Global workforce over 40,000– Approx 30% of the world market– Revenue more than US$2.5 billion
• Headquartered in HK, manufacturing in Dongguan, Japan, & US
• Diversified business strategies since 2000– Acquired Acasia from ASTRI in 2004 for
Optoelectronics technologies– Partnership with Intel and others on optical
communication technologies – Finger navigation for Smart Phone
applications
Company Highlights – SAESAE
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• Founded in HK in 1999 focus on the commercialization of lithium polymer batteries of Bellcore
– The first licensee of the world successfully turned the technology to volume production
• Acquired by TDK in 2005, now the largest of the world for lithium polymer batteries
• Manufacturing in SongShan Lake of Dongguan, extending to NingDe of Fujian with over 8,000 workforces
• Revenue over US$500 million
Company Highlights – ATLATL
EV powered by ATL Battery
Energy Storage Systems for Smart Grids
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Company Highlights – AltaiAltai
• Pioneer of Super Wi-Fi technologies on outdoor wireless broadband solutions
• Spun-off from ASTRI in 2006• HQ in HK, branches located in
Shenzhen, USA, Singapore and Argentina with over 100 employees
• Award winning wireless technologies for Wi-Fi and white-space
• Leading telecom solution provider– Carrier solution deployed in more
than 60 countries
(Remark: Altai is an independent technology startup)
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5 Driving Forces of Innovation
Technologies
Manufacturing
R&D
Talents
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The changing ecosystem of hi-tech
Used to beUsed to be NowNow
Core Core TechnologiesTechnologies
Mainly import from Mainly import from overseasoverseas
Hybrid portfolio of indigenous and Hybrid portfolio of indigenous and overseasoverseas
MarketMarket OverseasOverseas Overseas are important while local Overseas are important while local PRC markets are emerging and PRC markets are emerging and growing exponentiallygrowing exponentially
ManufactureManufacture HK based HK based migrating to the migrating to the PRDPRD
PRD migrating to lower cost regions PRD migrating to lower cost regions within, or in some cases outside within, or in some cases outside Mainland ChinaMainland China
R&DR&D Process and Process and manufacturingmanufacturing
More full-fledged including More full-fledged including fundamental research, materials, to fundamental research, materials, to product developmentproduct development
Top-notch Top-notch TalentsTalents
Heavily rely on Heavily rely on overseas suppliesoverseas supplies
Local talents are taking more driving Local talents are taking more driving seats than beforeseats than before
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HK-Shenzhen Cross Border Innovation
• Motivations of the both sidesMotivations of the both sidesFor HK:For HK: Access to talents, markets, and suppliers in China
For PRC:For PRC: Access to capitals, IP protection, jurisdiction system, etc
• An increasingly conducive environmentAn increasingly conducive environment– The lessons of Foxconn and other OEMs
• In contrast to winning companies such as Huawei, ZTE, Tencent, BYD, etc.
– Increasingly comprehensive infrastructure• Hardware: Logistics, transportation, etc
• Software: Research institutes or campus of universities of HK in Shenzhen, etc
– Determination of the two governments?
• A vote of confidenceA vote of confidence– The plan of a TDK R&D Center in QianHai, Shenzhen– But can this be considered a vote of non-confidence of HK?
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