Proximity to major markets and a powerful concentration of technological expertise are making Guangzhou a preferred base for Arasor
California-Based ARASOR specializes in communication components and systems product solutions. Its business encompasses optical fiber transaction networks, wireless communications and terminal products, and consumer electronic display products.
After its establishment in 2001, Arasor began a search for an ideal product testing and measurement location. Singapore, Taiwan and Korea were each considered in turn, as were Shanghai and Chengdu. But in the end, Guangzhou won out a s the best possible solution for Arasor.
“The government was very sincere in inviting us to set up our operations here, and we also felt that the communications equipment industry is better concentrated in Guangdong than elsewhere,” says Simon Cao, the company’s chairman and CEO. “Two of our main customers – Huawei and ZTE are located in nearby Shenzhen, and we’re only one hour away from Hong Kong by ferry. Guangzhou’s University City will also provide a major talent pool for us in the future.” Unlike Shenzhen or Dongguan, Nansha – located at the southernmost part of Guangzhou – o?ers ample space and fresh opportunities for the long-term development of the industry. Arasor has also brought a team of returnees from the US to here. “Expatriates like the environment here – it helps them generate an innovative mind.”
According to Cao, the US$3.5 billion telecommunications component grew by15-20% in 2004. This year Arasor expects to reach a turnover of around US$120 million, and within the next two years US$300-400 million. “We can further utilize our Nansha plant for another 20% and already we’ve begun to relocate part of our chip fab capacity from Yokohama to here. The growth prospects for our customers like ZTE and Huawei is huge internationally, and this has in turn fueled our own growth.”
As a city with high concentration of telecommunications expertise, Guangzhou pulses with the rhythm of the market. “We’re active in forming tighter communications between the supply chains, just like what Silicon Valley used to do… ”
Cao says there are more Chinese professionals in the optical electronic industry nowadays. Mostly trained in the US, they are now beginning to return to the country. “Our team consists of a mixture of Chinese, Japanese, Indians and Americans,” he explains. |
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