"I've
got scars all over my body from 22 years of doing business in China,"
proclaims Peter Dietz. Recently retired as president of Silicon International,
Dietz isn't complaining though. He belongs to the growing chorus of
experts singing China's song. At SEMI's M2S2 symposium
in September, a jovial Dietz urged luncheon listeners to earn their
own scars by doing business with this new member of the World Trade
Organization.
Beijing
"absolutely craves to have modern technology," says Dietz. He insists
"everything you need to know"about setting up shop in China is this:
At least 12 fabs and foundries will be built by 2010, and Chinese manufacturers
will spend more than $30 billion on equipment, materials, and services.
Patience
is the watchword. Dietz offers a one-word language lesson: guanxi, which
broadly translates as a "friendly, personal relationship." Developing
guanxi is at least a two-year process, so "start early" if you hope
to sell to a chip factory.
The
"approval chain" is overseen by the chief engineer, and "the chief engineer
is God," Dietz cautions. It takes at least 10 years to become an "old
friend," and making headway is like requisitioning pencils at DuPont
back in the 1930s, he jokes. To lower the frustration level, Dietz offers
these tips: Pay attention to the wisdom in folklore stories, and note
that "it isn't until both sides laugh that you can get into serious
negotiations."
