My interview today is with Jay Chen, CEO of City of Industry-based GigaFast (www.gigafast.com). I thought it would be interesting to hear about one of the many tech companies which straddle their operations between Los Angeles and a foreign country.
BK: Tell me a little bit about GigaFast -- what kind of products does
your company manufacture?
JC: GigaFast is a premier manufacturer of networking products catering
mainly to the SOHO and SMB markets. Our product line includes 10/100
ethernet products, wireless networking products and homeplug powerline
products. We also provide routers as well as VDSL hardware.
BK: How do you sell your products, and what are your primary channels?
JC: GigaFast products are sold through both distribution and retail
channels. Our primary channels include: Ingram Micro, Micro Center,
Fry's, PC Club, TigerDirect, etc. Besides selling GigaFast branded
products, we also do a lot of OEM business for other brands.
BK: How long has your company been around, and how is it funded?
JC: GigaFast US has been around for 5 years and is privately-owned
corporation.
BK: I see you have offices here in LA, Taipei, and in China -- what do
each of your offices do, and where is your R&D conducted?
JC: The Los Angeles office primarily acts as a sales and marketing office
for the U.S. and Canadian market. As far as manufacturing goes, we have
facilities in both Taiwan and China. However, R&D is done in our Taiwan
office.
BK: How did Gigafast decide to locate its US offices in the City of
Industry?
JC: City of Industry is located in an area where many wholesalers are
located locally and is a short drive to the developing tech area in
Irvine.
BK: What are the challenges with running a company with split operations
in the US and Taiwan?
JC: Communication is a key issue. Keeping both sides on the same page.
Taiwan starts work pretty much when we get off and it is very difficult
to keep both sides heading in the same direction. Marketing and Sales in
the US might want to promote a product Engineering isn't prioritizing.
We dedicate a lot of resources to maintaining this bridge of
communications through constant and daily contact between the offices.
BK: What do you feel are advantages/disadvantages of conducting R&D in
Taiwan?
JC: R&D Engineers are less expensive and more effective in Taiwan. Since
manufacturing of the products occur in Asia, local R&D personnel are
vital to obtaining and effectively using local sourced parts and
components used in keeping our products at low competitive pricing.
Engineer salaries and hours are also better maintained working along
side production managers and assembly personnel to familiarize them with
the manufacturing process so it can be incorporated into design.
BK: Finally, what do you think distinguishes your company from the many
others in the SOHO LAN space?
JC: GigaFast is the only direct manufacturer with retail experience and
knowledge leading to better retail products. Most manufacturers and
brand names such as Linksys or Netgear are divided and the brand names
contract local manufacturers to work on products for them. GigaFast is
able to manufacture a complete product line into its own brand name
offering engineering knowledge all the way down to consumer technical
support. In addition, GigaFast is able to quickly engineer and promote
superior products and technologies such as HomePlug.
BK: Thanks!
posted on Tuesday, July 8, 2003