Don't want to make 5 eyes job too easy /s
Chinese semiconductor industry
- Thread starter Hendrik_2000
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Smart move. They are buying some more months with that money.
Now ASML / Japan have in their pocket $1.6 billion good reasons to withstand US pressure.
This is down-payment, so they would have to return the money in case of a ban. For sure not something that a firm does gladly.
well. Chinese netzines are extremely negative. most of have stuck in 90's. always try to downgrade own country's achievement. the problem is lack of information or they just don't bother to check.
i can bet, people like us know more about recent Chinese achievement.
Much, if not most, of the negativity on the Chinese internet are from overseas sources and not from actual mainland Chinese netizens. When Weibo started displaying ip locations of users, people found that much of the past negative posts and rumor mongering by people claiming to be local insiders were actually posted from Taiwan, US, UK, etc. It has also been observed that whenever Taiwan has a power outage, the amount of toxic discourse on mainland Chinese social media goes way down.
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lots of 1450 people are stirring things too.
1450 and the frogs and some people who believe in the west and don't believe in the development of China... I and my friend wared about semiconductor information with them, to the point that my weibo got warned twice...
Is a wild place for sure. A lot of speculative investors.
Bidding procurement still high.
I know were the sentiment come from, some Chinese companies designed their processes around US tools, as US companies depart, if critical process are hurt so will be non critical ones. Like YMTC who designed some process using KLA tools, their CEO maybe didn't wanted to wait the validation of similar tools in China, from RSICSH, Angstrom and Shanghai Jinhce. Who knows.
IMO.
-Chinese equipment manufacturers need to increase production capacity.
-Chinese foundries need to establish closer partnerships with local suppliers, secure supply chains, work-grow with them and design their process around trusted equipment suppliers. I know for sure SMIC has gotten closer to Wanye (not Wayne) enterprise, Jaixin, Naura, AMEC, PNC, SMEE and Etown. Other companies should follow it.
-Although most of China local tools come from the effort of China especial programs( like project 02 and 973) but more needs to be done, Chinese toolmakers need to establish even more closer partnerships with Chinese research institutes to reduce R&D cost and have access to a wider pool of talents, the goverment needs to lessen to cost of R&D at least for a while. The Shanghai Integrated Circuit Equipment Materials Industry Innovation Center is a great start but more needs to be done.
-Redesign manufacturing processes around Chinese-non US tools.
-Tap the talent left by this US companies, a guy who spend a decade repairing AMAT tools, surely know a thing or two.
Kind of interesting that SMIC doesn't really do bids anymore. It looks like that for its Beijing Capital fab, almost everything is picking Chinese suppliers. For SN1/SN2, they probably also have fixed suppliers, since only a selected supplier can provide them with the tools they need.
I dug through the press release a little more. This is from HKSE release
It says here that in Q2, they spent $1.67 billion in Capex followed by $1.82 billion in Q3. We know from other release that they spent $2.5 billion in all of H1. So based on this, the Quarterly Capex looks like:
Q1 $830 million
Q2 $1.67 billion
Q3 $1.82 billion
Q4 $2.3 billion
If I'm reading this correctly, the explanation is for prepayment of early delivery (提前下單) of long term contract. I can only assuming that they are speeding up the delivery of non-Chinese equipments.
Maybe, I'm reading too much into this, but on the Q2 earnings release, they described this about their product offering
and in Q3, they described it like this
this is the first time they've used FinFET rather than 14nm has the most advanced process they do. It's been 14nm since 2019. I think they are finally moved on to really producing N+1 process in Q3. For the past 3 years, they've been raising yield on 14nm and maybe 12nm + trialed production of N+1 chips.
Earnings call at 8:30-9:30AM Hong Kong time. Hopefully, I will be able to read the transcript tomorrow my time.
I guess once you have validated certain suppliers, if price isn't a factor (which I assume to be the case here) there isn't really much of a benefit in having a bidding process since that means lost time. Its safe to say they have a blank check or close to it in terms of financial support for expansion and advanced node development so in that case since the priority is placed on rollout so it would make sense to just continue placing orders with the existing vendors even if it means your financial efficiency is reduced.
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