Chinese semiconductor industry

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tokenanalyst

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dfrtyhgj said:
HSMC is literally a scam from day 0. Weired that the guy didn't get jailed.
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I don't see it like failure but a lesson.
Please correct me if I'm wrong, I have read about this story, but I think the guy was serious about setting up a 14nm factory, he was too sure he could build one. They built the facility, attracted TSMC talent, people with a decade of experience, including the CTO of TSMC, they bought the equipment including convincing ASML to sell their prized scanners - it seems like a lot of work for a scammer. But 14nm FinFet is too ambitious even for a company with a decades of experience like SMIC or GF, there are only a few companies in the world that can do that process node.
Again, correct me if I'm wrong, but it could be the combination of a local government with a desire for advanced semiconductor capabilities no matter what (a competition with between local governments) and an overly ambitious man with a desire to enter the semiconductor industry no matter what. With the TALENT this guy managed to hired if they had started small, like making chips with lower process nodes like 45nm or power, MEMS, analog chips, if he had listened to the recommendations OF THE PEOPLE HE HIRED to start small they could have been successful, they wouldn't have burn the money so quickly.
At the end of the day i personally think was a waste of a good opportunity and a lesson to be learned like the entire history of the tech industry, but like this guy said.
For the Wuhan government, it has been a painful lesson. “For China’s hi-tech industry, it’s not necessarily a bad thing,” said Zhou from Decent Capital. “HSMC is like a whale. After its death, its corpse – the talent and equipment – will soon be digested by others [in the ocean], so it’s not a waste for the entire ecosystem.”
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tokenanalyst

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dfrtyhgj said:
The HSMC guy lied about his background, he has 0 experience in semiconductors. I'm terribly confused why they haven't jail him already.
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I didn't read about the lie but could be, having not experience is not necessary a bad thing as long you get the right people who has the experience on board AND YOU LISTEN TO THEM, he managed to get the CTO of TSMC on board that guy experience would have been more than enough to kickstart a decent semiconductor project with capital available. The local government is also to blame because they didn't evaluated the feasibility of the project, 14nm from the start is a pretty ambitius even for the most experienced companies, the probability of bleeding money are really high. People recommend him multiple times to reduce the scope of the project because 14nm is flying too high close to the Sun and knowing politicians i can bet money with anyone that he at least at some point he try to convince them to reduce the scope of the project but they refused because they where hell bent on the idea of having a cutting edge fab in their city. I am maybe wrong but that is how i view it.
 
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tokenanalyst

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gelgoog said:
Yeah he paid salaries and people with actual knowledge of the discipline were actually working on the project. Not just the CTO. But he had really poor cost control. It did not help that he knew squat about the tech. It was a scam but not to the degree people think it was.
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One of the thing that i hate the most from Western media is that they take any event that happen in China, Russia or any country that is not aligned to their interest without context, they multiply it by ten and then elevated the result to the power of 3, just for the purpose of propaganda.
 
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gelgoog

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Well it was worth the propaganda I think. Perhaps not a scam on the same scale as Theranos but a scam nonetheless.
China needs to learn with how South Korea and Japan boosted their tech industry by investing in cartels who actually know what they are doing rather than so easily spreading money around. SMIC clearly knows what they are doing. SMIC will open a plant anywhere you would like as long as there is funding for it.
 
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huemens

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HTC to invest in China semiconductor investment funds​

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HTC has announced that its subsidiary HTC Electronics (Shanghai) will invest in two semiconductor industry funds in China to get access of chip supplies.

This is the first time that HTC invested in Chinese semiconductor industry funds. Most of their non-core investments were in startups related to VR/AR contents or applications.

The company disclosed in a January 7 press release that its investment in Kun Qiao (Suzhou) Semiconductor Industry Equity Investment Fund II (Limited Partnership) will not exceed CNY50 million, while that in Kun Qiao (Xiamen) Semiconductor Industry Equity Investment Fund II (Limited Partnership) will be limited under CNY250 million. In other words, its total investment in the semiconductor funds were under CNY300 million, or approximately US$48 million.

The Kun Qiao (Xiamen) semiconductor industry fund will focus on IC design, advanced manufacturing, digital economy, innovation R&D platform, etc, with the goal of raising CNY45 billion in total amount to invest in more than 40 projects in the Xiamen Huoju High Tech Zone.

Analysts quoted by media said as China will continue to pursue self-sufficiency to produce chips domestically in the next 10 years, many companies have been investing in the semiconductor investment funds supported by the government to secure their access to IC production or IC design capacities in China.

Besides HTC, MediaTek and Foxconn Industrial Internet (FII) have also made similar deals to invest in the semiconductor investment funds in China.
 
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