How the USA is losing the hi-tech war

THERE'S TWO STORIES from electronics titles over the last few days that the Chicago Savant has drawn to the INQ's attention.

The first, in EE Times, relates to a talk iSuppli's Len Jelinek gave yesterday, saying that the Communist Party - you've heard of Tianamen Square, right? - has taken over the semiconductor industry in a series of five year plans aimed squarely at knocking the US and other democracies off track.

Here. China's entry into the World Trade Org has killed tariffs on semiconductors but also has allowed the Communists to build giant factories just ready to soak up capacity.

Then we've an article at EB News, which reports that Chuck Grassley has complained to the Minister of Commerce for the PRC asking it get better at obeying the WTO rules.

That's here.

We met Jelinek 18 months back and reported at the time that he just couldn't understand why US firms were blind to what was clearly a long term plan.

We think we understand. Most US investors and semiconductor firms are so blinded by the short term quarterly grind of results and the share price ups and downs, that their long term is far shorter than any five year plan. Five months would be interesting.

And so the kind souls in the PRC Politburo must just be laughing to themselves as they see everything inexorably turning their way, as the US and the Western World not only cede most of the technology to Asia, but assist it by outsourcing all the IP too. Maybe it's Asia's turn again... µ