I wonder if Zeiss doing this is a hedging activity to ensure continued access to the Chinese market for its end customers. We know they are a supply to ASML and other advanced manufacturing entities. It is possible that they are positioning themselves against future actions by forking their operations to ensure continuity. For all we know they could have been requested to do this by a customer such as ASML. As much as their is talk about de-coupling, it works both ways. For some companies, they have no choice but to exit the Chinese market. For other companies, they will end up moving operations to maintain access to the Chinese market. It will be interesting to see how this plays out. Someone else had posted about multinational companies creating duplicate supply chains as a hedge, this may be the start of it.
Chinese semiconductor industry
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you always make this topic more interesting...i choked on rice when reading this reply
Heraeus, Shin-Etsu invest 500 million yuan to build quartz semiconductor base in Liaoning
By Global Times Published: Oct 19, 2022 03:04 PM
The screenshot of Heraeus' official WeChat account
A new quartz semiconductor manufacturing base invested by German tech group Heraeus and Japanese tech company Shin-Etsu Chemical Co (Shin-Etsu) started construction in Shenyang, Northeast China's Liaoning Province, Heraeus said on Wednesday via its official WeChat account.
The manufacturing plant, back with a 500 million yuan ($69.22 million) investment, has a 68,100 square meter of floor area and 89,500 building area, and scheduled to be put in to use in June 2024 producing series of super pure quartz items in semiconductor industry.
The new plant was expected to realize annual capacity of 560 million yuan after entering official operations, and generate 45 million yuan of annual tax payments for local financial department, in addition to 200 new private sector jobs, China News Service reported.
Representative from Heraeus said during the construction launching ceremony that the new plant will be the only manufacturing base of quartz products in China, and will be one of the most important suppliers for company's clients in China.
The new plant will be equipped with top production line from material selection, manufacturing and test, and can also provide customized technical support service for clients, the article noted.
On Tuesday, German optical giant ZEISS also increased its investment in China by commissioning a building on a land parcel the company purchased in Suzhou Industrial Park, East China's Jiangsu Province. The new plant with a price tag of 170 million yuan will be used by the company's microscope division upon completion, boosting the company's localization level.
Russia and China should build a joint semiconductor industry
The only way to escape the US technology sanctions squeeze is to pool expertise and resources, without limitsRussia and China are perfectly complimentary in this endeavor. First of all, China possesses surplus capital, expertise and other resources, with an increasingly educated workforce which excels in scientific fields. On the other hand, Russia possesses the critical natural materials required to make semiconductors.
China has access to all or nearly all the materials themselves. In fact China can produce more of the materials for semiconductors today than Russia. The business is more about having the requisite production facilities than having a lot of specific minerals to begin with. I do not see Russia playing more than a secondary role in semiconductors. They can be a second source for some materials.
Russia, only after this war started and they suffered the sanctions, did the government begin investing into their own tools industry after like three decades of rot. Maybe near the end of the decade we will see some results there. No, Russia will basically be a client for Chinese tools and materials for the most part, and it is a good idea to hook Russia into the independent Chinese semi sector. This will allow the Chinese semi sector to gain more critical mass in a large market which is immune to Western pressure. I think we will see the Chinese semi sector bifurcate into two. One will try to operate independent of Western tools and materials and another will continue with the dependence until the Chinese industry can wholly stand on its own two feet.
Russia, only after this war started and they suffered the sanctions, did the government begin investing into their own tools industry after like three decades of rot. Maybe near the end of the decade we will see some results there. No, Russia will basically be a client for Chinese tools and materials for the most part, and it is a good idea to hook Russia into the independent Chinese semi sector. This will allow the Chinese semi sector to gain more critical mass in a large market which is immune to Western pressure. I think we will see the Chinese semi sector bifurcate into two. One will try to operate independent of Western tools and materials and another will continue with the dependence until the Chinese industry can wholly stand on its own two feet.
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proelite
Junior Member
There is minimum value added by Russia in such a partnership. The only substantial contribution that Russia can make is leasing large parts of Siberia to China in the future as a hedge against global warming. Semi conductors will be least of people's worry then.
Yeah, no...
Russia can use Chinese semiconductors equipment if it wants and in exchange it can supply some semiconductor materials. However "build a joint semiconductor industry", no.
Russia and "joint" programs don't match
Russia does have some materials like neon gas and sapphire crystal. They have the world's largest manufacturer of sapphire crystal, Monocrystal, they have the largest production and make the largest wafers. Sapphire crystal is used in GaN manufacture for power electronics and LEDs. But China also makes their own sapphire crystal in some limited amounts.
Conversely Russia has really limited production of silicon crystal. They cannot even manufacture their own 200mm wafers. China is the world's largest manufacturer of bulk silicon because of the solar panel industry. And they can also make 200mm and even 300mm wafers.
Conversely Russia has really limited production of silicon crystal. They cannot even manufacture their own 200mm wafers. China is the world's largest manufacturer of bulk silicon because of the solar panel industry. And they can also make 200mm and even 300mm wafers.
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