Chinese semiconductor industry

AssassinsMace said:

What are they trying to prevent? China's dominance in the China market that made 60% of their business? They're preventing nothing. This alliance is about helping the US do what it can't do on its own. It won't be preventing China from doing anything except making US allied governments, being their only customers, from paying more for a product China will be producing and selling cheaper in the world.

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Correct, this entire thing is just so US can build their domestic semiconductor industry again, because they see it as a national security threat and a long-term strategy. Semiconductors is important for the future of warfare, as things become ever more digitalized with drones, combat/prediction AI and autonomous weapons being developed.

I don't think they'll succeed at getting everything they want though, all those semiconductor industries understand that US wants to harvest them and would likely drag their feet as much as they can, like TSMC building a plant in Arizona but the chip is only for 28nm.
It might take a while for their strategy to take result, but by then China would likely be insulated from sanctions, and those companies might have developed alternatives to Western IP to skirt around the sanctions and decrease the leverage US have on them.

Edit: Also they might want their competitors to lose their market share in China, to make it more sustainable for them to keep the operations by taking those lost market share.

FriedButter said:

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Anyone know what Huawei is currently selling for it to gain a 75% surge in net profits but a decline of 28% of revenue? What exactly are they selling for that item or service to be that profitable.

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The cell phones never made much money for anybody by itself.

The cell phone is important, because it connects the individual to everything else digitally. Therefore, if a company has a presence in the cell phone market, they naturally will come to have a presence in other markets, which could be more lucrative.

The iPhone, that is the intro to the Apple ecosystem.

Xiaomi was a cell phone maker that branched out into appliances, and the IoT for appliances.

Huawei is a telecom company, that makes routers, switches, antenna, base-stations, but the phone is important so they got into it. The phone is the remote control for the digital age. Huawei is fundamentally a network company, making the equipment, which naturally allowed them to branch out into the services of the cloud etc. But the phone, is still important because that is the remote control in your hand, even though no one really made that much money on it.

So Huawei is making less phones, and profitability, the return on capital is up. That should be expected.

Often what we read from the Western press regarding Huawei is simply false and retarded.

Coalescence said:

Correct, this entire thing is just so US can build their domestic semiconductor industry again, because they see it as a national security threat and a long-term strategy. Semiconductors is important for the future of warfare, as things become ever more digitalized with drones, combat/prediction AI and autonomous weapons being developed.

I don't think they'll succeed at getting everything they want though, all those semiconductor industries understand that US wants to harvest them and would likely drag their feet as much as they can, like TSMC building a plant in Arizona but the chip is only for 28nm.
It might take a while for their strategy to take result, but by then China would likely be insulated from sanctions, and those companies might have developed alternatives to Western IP to skirt around the sanctions and decrease the leverage US have on them.

Edit: Also they might want their competitors to lose their market share in China, to make it more sustainable for them to keep the operations by taking those lost market share.

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Sometimes it is best to not to try to overthink it.

Regarding the US semiconductor industry and the US government plans, they are just mother fucking idiots.

We will wait for the day when all that American chip capacity comes online, and then they will find their customers.

You know, I think the way it is done, is that everything has to be in place, including the end users and customer, before any dares to put that kind mother fucking money on the table.

Here, they are doing it, like an idiot.

Good luck to those mother fuckers.

They are going to fucking need it.

The reality is there will only be 2 outcomes to this sort of excessive and redundant capacity investment with no consideration for demand markets:

1. The capacity never materializes as projects go bankrupt or cancelled due to not making economic sense, not just in terms of money but in terms of supply chain need.

2. Overcapacity pushes prices to the bottom (if can sell) or inventory buildup (if can't sell) and results in being unable to sustain the capacity.

Tyler said:

So Korea, Japan and Taiwan are basically handing over their technology to the yankees?

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They just being "gwai" and following filial piety.

The Americans are "Big Daddy" to them.

That is true of Japan and Taiwan.

Not so of North Korea or South Korea, because both places are full of Koreans.

Sometimes the Korean get into arguments!

Then Big Daddy gets frustrated, turns to the others in east Asia.

sndef888 said:

As I understand it the hardest hit sector was the smartphone division right? Anybody know how the other areas are doing? I heard that Huawei fell behind in 5g as well due to the sanctions

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"....I heard that Huawei fell behind in 5g as well due to the sanctions. ..."

Probably you bumped into some copium news.

horse said:

They just being "gwai" and following filial piety.

The Americans are "Big Daddy" to them.

That is true of Japan and Taiwan.

Not so of North Korea or South Korea, because both places are full of Koreans.

Sometimes the Korean get into arguments!

Then Big Daddy gets frustrated, turns to the others in east Asia.

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Never say this to any Korean, but Koreans are the Indians of East Asia

tygyg1111 said:

Never say this to any Korean, but Koreans are the Indians of East Asia

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I would like to know what you meant: "Indians of America" or "Indians of India?"

Tyler said:

So Korea, Japan and Taiwan are basically handing over their technology to the yankees?

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I guess the idea here is to "coordinate" banning of semi equipment to China.

If only US equipment are banned, this may be not strong enough and allows free hands to competitors, mainly Japanese. But if all these regions are "coordinated" then US can ban almost all semi equipment to China. I guess we are heading in that direction. The best countermove by China is to keep localizing equipment as fast as possible, because clock is ticking...

Another and more subtle goal is to prevent Chinese equipment manufacturers from selling outside China, creating a de-facto decoupling in semiconductor market that can be even more dangerous in the long term. It won't be easy for China to avoid that.

YMTC will supply NAND flash to Apple