Chinese semiconductor industry
- Thread starter Hendrik_2000
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The Chinese government should not bear all the responsibilities and the associated costs for tools' development. The private players have responsibilities to pay most of the R & D costs since it is their corporate asses on the line and they are the ones who will profit from the tools.
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Yeah,for 5nm. Issue is is that it is 5nm DRAM and not logic.
This are basically moonshot projects and the market doesn't like moonshot projects. If the goverment or outside investors don't absorb at least a good part of the cost of the research and development of this tools, companies may not even want to try take the risk or would take decades, the entirety of the China semiconductor industry may die and therefore the electronic industry and IT industry if a crazy enough US administration comes into power. We are talking a good percentage of China GDP may be a risk if the U.S. Hawks exacerbate their war against China technology sector.
The Chinese goverment and the Chinese public in general should treat this for what it is. War. And respond at such. Companies, engineers, researchers and research institutions are the soldiers.
Take SMEE for example, there is no way a company like SMEE would touch a project like the immersion lithography project without substantial goverment support, for SMEE alone is simple way more profitable to develop and sell very low end lithography machines and inspection tools than even dreaming of trying to compete against ASML. Is just impossible for them to do it alone.
If the Chinese goverment leave this to market to solve alone, it could be a huge and costly mistake. Even if "corporate asses" profit from the war-like effort, the benefits for China may very well worth it, if that means a secured semiconductor-electronics supply chain.
Well, Chinese government has been screaming "build dependable suppliers" ever since Xi Jinping became the president and most of the R & D money were provided by the government, the equipment developed before the trade war went nowhere because no one bother to use them. The reason is absorbing new and untested equipment cost time, money and efforts. In a normal environment no sane managers will want to adopt new and most likely inferior equipment. Without the market adoption, new domestic equipment makers can't improve nor expand. The industry has to change its attitude and help out as well. The government can provide cheap/no interest loans to the corporations and set some covenants to prevent abuses.
I agree, these US companies should never have been allowed to monopolize the Chinese market, knowing the risk that export controls represented, too much trust was given to these companies and too much decision-making power was given to foreign managers in the direction of the industry, but also the government was blind to the idea of making chips no matter how.
A smaller industry but more localized and secured against outside interference from these lunatics. An industry that will not only grow horizontally but also vertically where all sectors grow in unison rather than having few sectors growing but dependent of untrusted tools and other sectors stagnated. The localization of the industry rather just making a lot of chips with borrowed tools, It would have been a better goal.
Chinese government eliminated import tariff on foreign semi-equipment，as part of incentive measure to boost domestic semiconductor production，since last year. That tells you about government‘s perception on foreign equipment.
Well they have to say that to escape scrutiny from a so called reliable friend....lol. It's a standard business double talk cause I assure you everybody like the smell of money especially the Red One within the Red Pocket.
You say it best, they will TRY.
They will TRY not to take advantage of the situation. They will TRY not to take the market shared of American companies. They will TRY to reject billions on sales because they care about the well being of their American competitors.
There is not guaranteed that they will succeed it but hell if they will TRY.
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