editorial Having recently returned from a visit to Hong Kong, it seems appropriate to use this editorial to make a few observations about the microelectronics industry in this rapidly developing country.

The most obvious conclusion arising from a tour of various companies in Hong Kong is that they are very different from those to be found in Western Europe, the USA and Japan. Leaving aside one ortwo 'off-shore' outposts of US components companies, the bulk of the manufacturing industry is concentrated on a number of small to medium sized operations whose main attribute appears to be their extreme sensitivity to market changes. For the past several years their business has been expanding at a phenomenal rate, especially in clocks and watches, toys and games. During this period, their success has depended on low production costs which in turn depend on low labour costs. It is now clear that this period of growth is coming to an end. Increasing competition from South Korea, Taiwan and Singapore is forcing the Hong Kong industry up-market. Research and development laboratories, previously almost non-existent, are soon to be established, the government has plans for a significant increase in graduate manpower and high technology production facilities are slowly taking over from seeming archaic, but, for previous products- highly cost effective- manufacturing lines.

Thus although there is, surprisingly, only one ion implanter as yet in operation in the colony, it is clear that the emphasis is changing and Hong Kong is seeking new markets to match her increasing expertise. Taking into account the numerous advantages enjoyed by these companies- notably very shrewd management, very hard working employees and a government which adopts a largely laissez-faire att i tude- it seems certain that many more Western (and Japanese) component and systems manufacturers will soon be feeling the sharp edge of new competition.

Of course, the situation in Hong Kong cannot be totally separated from that in her vast neighbour China. Here too, there are many signs that progress is being rapidly made in microelectronics. Many universities, notably those in the Shanghai area, are active in relevant research and there is tremendous interest shown in modern device technology. The current issue of the Chinese JournalofSemiconductors contains papers on such topics as - DLTS & transient capacitance measurements, epitaxial growth of GaAs and pulsed electron beam annealing of implanted silicon.

In order that readers may keep abreast of these developments, the Journal hopes to publish abstracts of the contents of the Chinese Journal of Semiconductors in subsequent issues.

JOHN BUTCHER

MICROELECTRONICS JOURNAL Vol. 12 No. 6 © 1981 Mackintosh Publications Ltd., Luton. 3