Chinese semiconductor industry
- Thread starter Hendrik_2000
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I have posted in this thread before. That I have absolutely no idea what Wingtech's management is thinking，what's the point of purchasing this three decade old garbage fab that no one wants in the first place？Now they just bought another outdated dutch fab Nowi this month.
I‘m totally confused as to why Wingtech is hunting these outdated fabs in Europe？Nexperia is already producing these mature-nodes analog chips and possess all the relevant process IP/tech，there is no techs that Wingtech can gain from buying these dinosaur european fabs. Why not just build new fabs in China？
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Semiconductor tools are all backordered. And they do not need newer equipment to make what they want to make. So this is cheaper and faster it is as simple as that. If they want to make a new fab it might take them 3 years or more. And this one, might be as short as 6 months to get them to make what they want to make.
That's the point，major players are delaying fab construction now，because semiconductor is in downturn cycle. Why would Wingtech wants operational fabs asap at this moment？If they choose to build new fabs，perhaps by the time the fab is operational，semiconductor enters upcycle again.
The glut is in newer nodes.
Business deals take time. These deals were likely started before the latest round of sanctions, back when Chinese companies were still operating under the assumption that the US and its allies would not block China from acquiring older technologies, and when the Chinese government was throwing money at any company that makes chips. From that perspective, it makes sense to acquire struggling chip companies from the West because you'd become an instant player in the industry, not to mention gain important patents that could then be leveraged for profit.
It was, after all, how Japan and Korea got started with their chip industries - by buying out struggling Western companies and recruiting experienced talent from the West. It was stupid of China to believe they'd get the same treatment as Japan and Korea but for a while, I could see how they thought they'd be safe.
Thanks again. Great analysis as usual. I would never call you a finwit! A term I associate with certain twitter users that think they know everything about subject that they've never looked into.
I do get confused why the US gov't is so interested in putting sanctions on Chinese display equipment when there is no obvious national security or even commercial reasons to do so. Seems like a rather suicidal things to do that will just hurt AMAT more. Although, I have not looked enough into Chinese alternatives here to know what kind of options BOE has domestically. @tokenanalyst and @PopularScience ?
SMEE lithography tools are already being used at high market adoption rates in display sector.
AMEC makes MOCVD for LED deposition.
For drivers, Chinese TV companies like Hisense and TCL already use in house chips.
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