Congratulations to Realtek Semiconductor! It's the sole clock generator IC supplier for One Laptop Per Child, and due to Quanta Computer's 10 million unit production goals, Digitimes reports:
Realtek Semiconductor is expected to see its clock generator shipments grow by 40% on year to 40 million units in 2007While this is an amazing windfall for Realtek, it makes you wonder about the other side of the equation, the local suppliers OLPC will destroy.
Imagine that you are a local PC supplier to local school systems. You assemble computers, load software, and provide maintenance with some parts imported, some parts, both hardware and software, made locally. You have a small but growing business. You have employees and suppliers with employees. You are constantly looking to expand your very homegrown business.
Then one million OLPC Children's Machine XO's hit your market, and like a neutron bomb, your hardware sales are wiped out. Laptops, built by Quanta, servers, made in Brazil, mesh, a Green Wifi design. You might be hired to install hardware or code software, but hardware production? Gone.
Now imagine a different scenario, one where OLPC does not give exclusive production rights to Quanta, does not anoint Brazil as sole server source suppliers, does not boost only Realtek's clock shipments, but opens up all the designs, software and hardware, to local producers.
In this scenario,
millions $30 Billion dollars does not flow every year from developing world coffers to Quanta or OLPC, but stays in the country - each country - and nurtures a hundred new Silicon Valleys, Silicon Huts if you will.
And from there springs forth each laptop, less than $140, less than $100, maybe even less than $50, with the profits, the wages, the skills embedded in each country, developing businesses, jobs, minds that not only "learn learning" but earn livings.
How does that, alternate, scenario sound?