Monday, October 18, 2010

Hua Hong over Grace

The always pending but never completed merger of Grace and Hua Hong is a step closer to being realized now that Ulrich Schumacher has stepped down as CEO and President of Grace and Gacre VP and former Hua Hong executive, William Yu Wang, has taken over as President.  It sounds if Schumacher went down fighting as he tried to become CEO of the Grace-Hua Hong JV fab, Huali, before resigning as CEO and President of Grace (link here).  Could the fact that the CEO position is still vacant mean Grace anticipates a full merger with Hua Hong sooner rather than later?

Thursday, October 7, 2010

Nonsense Number One

China is now being heralded as the world leader in patent filings (link here), but this world number one reveals very little about China's innovation prowess or lack thereof.  First of all, counting filings (applications) rather than approved patents is rather silly.  Anyone can apply to Harvard Law School.  What is impressive is getting into Harvard Law School.  Second, China is busy filing lots of patents in China where the process of approving patents is lax at best.  If (when?) China overtakes Germany or Japan in patents received from the USPTO or some other respectable patenting office, then and only then should we sit up and take notice.  Third, there are different types of patents representing different levels of innovation.  For example, in the USPTO system, the inherent innovation behind utility patents is all else being equal much higher than that for design patents.