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It “pivoted” on the advice of an early customer, which fortunately already had developed the “ink” which under UV light would form a uniform encapsulation layer for the large OLED substrates required for TVs and other large display applications.Two display companies in China identified Kateeva as a strategic partner, which allowed Kateeva to raise money from private Chinese VC funds, rather than taking money from regional government funds which might have asked Kateeva to locate its manufacturing operations in their local area. S.-based venture capital funds to favor software companies over manufacturing-focused opportunities.Bill Mc Clean, president of IC Insights (Scottsdale, AZ), said China is fast becoming a center for 3D NAND production, as several companies expand production in China.

Packaging multiple chips in a module is likely to play a key role in the Internet of Things (Io T) markets, Walker said.

“If this is what is happening to Japanese equipment vendors, what chance do Chinese companies have? Packaging may prove to be key Skeptics of China’s prospects might take a long look at China’s success in packaging, an area where China is succeeding, in part by acquisitions of Asia-based companies, notably STATS Chip PAC (Singapore), which was acquired by Jiangsu Changjiang Electronics Technology Co. Separately, SMIC and JCET formed a joint venture to focus on chip scale packaging, wafer bumping, and fan-out wafer level packaging.

The packaging joint venture is located 90 minutes from Shanghai, said Sonny Hui, senior vice president of worldwide marketing at SMIC.

China is getting started in equipment, but it has a lot of catching up to do.” Scott Foster, a partner in market intelligence firm TAP Japan (Tokyo), said China must have an international scope in the equipment sector if it hopes to compete with the likes of Applied, Lam, and other well-established vendors.

A few of Japan’s equipment suppliers are succeeding while operating in relatively narrow niches, but overall, competing globally is a challenge for mid-sized Japanese equipment companies.

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