Bob Chen

  • By Katie Macaluso
  • Volume 25 Number 2
  • Sat 03/01
Who knew 32 was the magic number for entrepreneurship? That’s exactly the advice given to a young, career-minded Bob Chen, now president and CEO of RAE Systems, a leading global provider of rapidly deployable sensor networks.

Chen’s mentor, John Garrett, a senior executive at General Electric (GE), advised him to consider starting a business before the age of 32.

“He said that after you are 32 years old, you have too many things to lose, and you are less able to take a risk to start a business,” Chen said.

Another experience at GE helped mold Chen’s future career as a business owner.

“I overheard my boss describing me as a ‘tiger,’ a great contributor who could solve problems, but he was not sure I could manage others,” Chen said.

Hearing those comments propelled Chen to learn to build teams, delegate and motivate. All of those skills, as well as the ability to attract and retain good talent, have helped in RAE Systems’ success.

Chen’s success is the prototypical American dream, and as a Chinese-born immigrant raised in Taiwan, ringing the opening bell in New York at the American Stock Exchange was the singular moment in which he knew he had truly made it in the “land of opportunity.”

“As an immigrant coming from the old country, I always wanted to build something like the Great Wall, something that would last,” Chen said. “That is why I built a company with manufacturing and technology in a competitive marketplace — I always want to make sure RAE Systems will be long lasting.”

In addition to being a visionary, Chen said his role as CEO has to be that of a cheerleader — rallying people to share the common corporate strategy, vision and values.

But before business owner or executive was part of his job description, Chen was operating with a purposeful philosophy.

“I was always thinking of how to apply technology to improve the quality of human life,” he said.

Born in the Hunan province in China, Chen moved to Taiwan at the age of 2 and was educated through university there, receiving his Bachelor of Science in electrical engineering. In 1970, he came to the United States for graduate school at the South Dakota School of Mines and Technology, where he earned a master’s degree in electrical engineering.

Chen’s first job was at General Motors’ electronic ignition division — Delco Electronics. While at his next job, GE, Chen attended Syracuse University, where he received an advanced engineering degree. Next for Chen was Tektronix, an instrument company that makes oscilloscopes, and Fairchild Semiconductor, the “father of Silicon Valley.”

His entrepreneurial spirit growing, Chen left Fairchild in 1980 and started Applied Optical Technology (AOT), a business venture that turned into a learning experience. The company was started with the vision to provide the electrical and optical test solutions for fiber optics.

“I had a vision that fiber optics would be in great demand and could revolutionize the communications industry,” Chen said. “It was the right direction, but the company and technology was 10 years ahead of its time.

“The most difficult lesson I’ve learned is if you are in the wrong business, or at the wrong time, it can be very costly, so it is critical to select the right business and be aware of timing in the marketplace.”

Chen sold AOT to HP and switched gears following a trip to Eastern Europe with a California delegation after the Cold War.

“While there, I saw a trend happening — people were becoming more concerned about the environment, and health and safety had become of greater interest to countries,” Chen said.

This sparked Chen’s interest in gas detection, and he started RAE Systems in 1991.

“I wanted to take my engineering and business experience and help the environment,” Chen said.  “I wanted to use technology to do something for society, and gas detection was something I knew I could do well.”

RAE Systems started with gas detection products and later added wireless solutions. But Chen has more plans in mind.

“The ultimate value to society is protection,” he said. “I would like to see the company grow from pure detection to more protection solutions.”

Chen has been married to his wife, Lien, since 1975, and they have two grown daughters. In his spare time, the gadget-lover  — he used to build radios as a hobby — takes in all the hottest technology, such as his new iPhone.

To learn more, call (408) 952-8200 or visit www.raesystems.com.