Chinese semiconductor thread II

[Michael90]

Main question
Is the source legit? Or is it "people familiar with the matter"?
If true, then expect a visit to CXMT by Gov't officials pretty soon.
They will not tolerate in fighting during a tech war.

I don’t think it’s a fight per se. I believe it’s more like CXMT telling Huawei they will not be treated specially from other Chinese companies(something Huawei demanded) and offered a lower price for their chips . Plus seems CXMT is wary of Huawei and her affiliated companies from stealing their tech while building their own parallel memory chips .

To me it seems more like a normal business conflict . They are still cooperating though as the article mentions, just that CXMT seems to be taking some precaution to protect her core technology and freedom to charge a uniform price without Favor. So I see nothing wrong here. If the Chinese government want to start intervening in normal market dispute/operations then that will spell the beginning of decline for China . Huawei should get used to the fact that they are just another tech company in China , no reason for another Chinese company to Favour them over the others(from what I’ve heard Huawei often seems to think otherwise, reason many tech companies used to not like Huawei that much ).
Afterall, CXMT basically has a monopoly in China in her sector and is the only one who offers such a critical product in China(don’t forget that they had to keep investing and persisting for years despite heavy losses they faced when the country/industry considered memory chips a low value business and many avoided investing there ).

 

[MortyandRick]

I don’t think it’s a fight per se. I believe it’s more like CXMT telling Huawei they will not be treated specially from other Chinese companies(something Huawei demanded) and offered a lower price for their chips . Plus seems CXMT is wary of Huawei and her affiliated companies from stealing their tech while building their own parallel memory chips .

To me it seems more like a normal business conflict . They are still cooperating though as the article mentions, just that CXMT seems to be taking some precaution to protect her core technology and freedom to charge a uniform price without Favor. So I see nothing wrong here. If the Chinese government want to start intervening in normal market dispute/operations then that will spell the beginning of decline for China . Huawei should get used to the fact that they are just another tech company in China , no reason for another Chinese company to Favour them over the others(from what I’ve heard Huawei often seems to think otherwise, reason many tech companies used to not like Huawei that much ).
Afterall, CXMT basically has a monopoly in China in her sector and is the only one who offers such a critical product in China(don’t forget that they had to keep investing and persisting for years despite heavy losses they faced when the country/industry considered memory chips a low value business and many avoided investing there ).

Sure that may be the case if it stays just a pricing dispute. But if this dispute causes conflict, impacts R&D and impacts China's drive for further self sufficiency in then I believe they will intervene, just like they intervened between Huawei poaching SMEE engineers.

 

[Michael90]

Sure that may be the case if it stays just a pricing dispute. But if this dispute causes conflict, impacts R&D and impacts China's drive for further self sufficiency in then I believe they will intervene, just like they intervened between Huawei poaching SMEE engineers.

Obviously if they do something that’s against national security then that’s a different matter altogether and the government will obviously intervene in that case, just like any country’s government would, no surprise there. However I don’t see them doing that, they are not stupid .

Huawei just have to get used to being the ted as any other tech company I guess. CXMT has grown and will be growing so crazy so fast that they will soon dwarfs Huawei’s revenues by the end of next year actually and they will be by far the most profitable company in china . So they will soon earn up even bigger than Huawei. Guess they will be respectful towards them by then . lol
Looking at estimates and when all their fans under construction come online , CXMT could even be as valuable as all Chinese semiconductor company combined (excluding Huawei/YMTC) a few years from now if this shortage persists(which I think it would for years to come as AI becomes even more critical for countries around the world ). Don’t forget that their IPO set for tomorrow could make them the biggest company in China itself (dwarfing state owned ICBC bank monopolies ). So companies like Huawei need to start being more considerate and respectful in their demands towards them . lol