Skywatcher
Captain
Honestly, I think that SMIC of all people could probably get emergency funding to replace American equipment with Japanese and domestic equivalents.
Chinese semiconductor industry
- Thread starter Hendrik_2000
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Yeah the whole that added value exploited from Chinese people to US. The 1/6 dollar to yuan deal is reasonable good price though. Gonna be a prize actually
SMIC and other Major FABs have set up a Centralised Warehouse to purchase and store Parts and Consumables.
So basically SMICs access to parts from the Warehouse is forever. Or as long as SMIC needs to continue production of 14nm, N+1 Chips and then to switch over to local equipment.
Unless of course Trump, in the last days of his Regime (before he lands in Jail) decides to sanction all the FABs in China and put a embargo on all sales of Chip making equipment to China.
This sanction will not work against SMIC.
Eventually SMIC will switch over to local equipment.
Then the loss transferred from the investors of the company to the Chinese people.
From the USA standpoint it makes sense, the high tech capability that China needs to use to replace the machines can't be spent for military example.
Skywatcher
Captain
Given that China has a $14-15 trillion real GDP, $5 billion or so in American IC fab gear is less than a rounding error (and SMIC could just unload the equipment to someone else).
ASML is not an American company aint it ? Why does a 3rd nation's companies need to get permission from the US government on to whom they can or cannot sell to just because the product has 10% American input ? That is so absurd, controlling what is essentially not theirs.
If your product contains 1% of American input, then the US has a say where the item can be sold. Being the world sole superpower, the US can afford to abuse its imperial power.
Hendrik_2000
Lieutenant General
That is BS US has to pay interest on those treasury bill it is not free money and support US consumer to buy more chinese product!. You rumbling about getting product for nothing is just not supported by reality . In 1975 Chinese GDP/capita is only $200 now is more like $10000 See what export economy does. The same thing with Korea, Japan, Taiwan, Singapore all of them follow the same prescription export their product!
antiterror13
Brigadier
Thats the problem, before Trump it had to be at least 25% of American input ... now there is no limit,even let's say 0.1%
It seems very good strategy (at least for Trump). It is in a short time, but definitely not in the long run. Now it is heavily backfired, the spirit everywhere is to get rid of any US content ... not good look for the US technology companies, and building back the trust takes very very long time, hard road ahead for Biden
But thats what Trump knows, no wonder he has bankrupted 6x of his companies ......
Trump may decide to sanction and put an embargo on call chi
p making equipment to China. China needs to respond hard, at a minimum blocking all sales of Boeing and general ban on exports of rare earth to the US. And this can't happen in a matter of weeks or months, it needs to happen in days so that supply chains in the US ground to a halt long before they can find alternatives.
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