Back to the complete issue
Friday, 14 October 2016

Shenzhen: The Silicon Valley of Hardware

DOCUMENTARY OF THE WEEK: Shenzhen: The Silicon Valley of Hardware. Just bear with us on China for a little bit longer. Fortune cookie riddle: What do you get when you combine hackers with the center of global electronics manufacturing and a lax attitude toward intellectual property laws? The burgeoning hardware economy of the city of Shenzhen, dubbed by Wired — which has apparently taken to making good documentaries now — as the Silicon Valley of Hardware. The film explores a marginally overlooked focal point in tech innovation outside the US and for the most part, outside the hands of the Silicon Valley oligarchy. It argues that Moore’s Law — which predicts that the number of transistors per square inch on integrated circuits doubles every year — is actually slowing down, and with it, the amount of useful stuff a computer can do. The trend is now moving to optimization and capitalizing on what smartphones cannot do.

Cue the city of Shenzen, an electronics manufacturing hub that grew out of Deng Xiaoping’s economic reform — and with it its own brand of tech entrepreneur. This isn’t a hacker in the traditional sense, but of the rise of the imitator-maker. The growth of an extremely strong manufacturing base, which also serves a middle class not yet as affluent as the West, has favored the counterfeit maker, whose ingenuity and healthy disregard for copyright laws has led to much cooler versions of gadget’s like robots, drones, fitbits, and other personalized hardware tech. In the business sense, this new innovation center is now fast becoming the place to rapidly prototype, manufacture, and get to market these devices. You can catch the documentary on Youtube here (run time: 1:07:50)

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.