1. Cross Boarder Innovation
Reflections on 3 Decades of Hi-Tech Experience in the Pearl River Delta

2. A tale of 3 successful technology companies incorporated over the last 3 decades
5 driving forces of innovation
Technology
Markets
Manufacturing
R&D
Talents
SAE Magnetics (H.K.) Ltd. in the early 80’s
Amperex Technology Ltd. at the turn of the millennium
Altai Technology Ltd. in 2006

3. Company Highlights – SAE
Founded in HK in 1980 focus on turn key solution for magnetic recording heads and Hard Disk Drives
Acquired by TDK Corporation in 1986
The only independent manufacturer for magnetic recording heads
Global workforce over 40,000
Approx 30% of the world market
Revenue more than US$2.5 billion
Headquartered in HK, manufacturing in Dongguan, Japan, & US
Diversified business strategies since 2000
Acquired Acasia from ASTRI in 2004 for Optoelectronics technologies
Partnership with Intel and others on optical communication technologies
Finger navigation for Smart Phone applications

4. EV powered by ATL Battery Energy Storage Systems for Smart Grids
Company Highlights – ATL
EV powered by ATL Battery
Energy Storage Systems for Smart Grids
Founded in HK in 1999 focus on the commercialization of lithium polymer batteries of Bellcore
The first licensee of the world successfully turned the technology to volume production
Acquired by TDK in 2005, now the largest of the world for lithium polymer batteries
Manufacturing in SongShan Lake of Dongguan, extending to NingDe of Fujian with over 8,000 workforces
Revenue over US$500 million

5. Company Highlights – Altai
Pioneer of Super Wi-Fi technologies on outdoor wireless broadband solutions
Spun-off from ASTRI in 2006
HQ in HK, branches located in Shenzhen, USA, Singapore and Argentina with over 100 employees
Award winning wireless technologies for Wi-Fi and white-space
Leading telecom solution provider
Carrier solution deployed in more than 60 countries
(Remark: Altai is an independent technology startup)

6. 5 Driving Forces of Innovation
Technologies
Markets
Manufacturing
R&D
Talents

7. The changing ecosystem of hi-tech
Used to be
Now
Core Technologies
Mainly import from overseas
Hybrid portfolio of indigenous and overseas
Market
Overseas
Overseas are important while local PRC markets are emerging and growing exponentially
Manufacture
HK based migrating to the PRD
PRD migrating to lower cost regions within, or in some cases outside Mainland China
R&D
Process and manufacturing
More full-fledged including fundamental research, materials, to product development
Top-notch Talents
Heavily rely on overseas supplies
Local talents are taking more driving seats than before

8. HK-Shenzhen Cross Border Innovation
Motivations of the both sides
For HK: Access to talents, markets, and suppliers in China
For PRC: Access to capitals, IP protection, jurisdiction system, etc
An increasingly conducive environment
The lessons of Foxconn and other OEMs
In contrast to winning companies such as Huawei, ZTE, Tencent, BYD, etc.
Increasingly comprehensive infrastructure
Hardware: Logistics, transportation, etc
Software: Research institutes or campus of universities of HK in Shenzhen, etc
Determination of the two governments?
A vote of confidence
The plan of a TDK R&D Center in QianHai, Shenzhen
But can this be considered a vote of non-confidence of HK?

9. THANK YOU