Adding capacity at 28nm or above where self-sufficiency exists or expected soon. There are exceptions, of course. More advanced node fabs depend heavily on US equipment now and are costly. They should be cautious about the investments.
Chinese semiconductor industry
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Adding capacity at 28nm or above where self-sufficiency exists or expected soon. There are exceptions, of course. More advanced node fabs depend heavily on US equipment now and are costly. They should be cautious about the investments.
China imports most of it semiconductor chips, there were reason in the past, but the most glaring reason today is simple.
There is no capacity.
It is a better deal to buy chips from abroad, than to build a fab that will take a few billion dollars, and make these chips yourself.
Will this really change? That is hard to say.
A few billions does not grow on tress or farmland, you need capital.
That is why Trump's ban on Huawei, which indicated everyone else in China is next, which was eventually proven to be true, the United States entity list was the biggest stimulus for the Chinese to finally develop self-sufficiency in semiconductor manufacturing.
Seems to me that 28nm is not important in terms of a goal, as that is a done deal. That tech should be known fairly well inside China. They should want their own fab inside China to manufacture it, and have that fab equipment to be American-free. This I think is kind of close.
Also, the Americans do not care about the 28nm, because that is how the technology market works. The older tech, although useful, do not make that much money compared to new tech. At 28nm, that is old tech, which eventually will go obsolete or go down in price so much that it comes a low profit item. So really, how much time and resources you want to waste on that or spend on that 28nm, that is up to how much money the company has to blow.
When Huawei announced they are building a fab for 45nm to be going to 28nm, that was for their own use. They were not going to make money off that investment. It was a test to see what they can do for themselves.
Note that once the Americans see the Chinese master 28nm, they probably flood the market with those chips.
There is no capacity.
It is a better deal to buy chips from abroad, than to build a fab that will take a few billion dollars, and make these chips yourself.
Will this really change? That is hard to say.
A few billions does not grow on tress or farmland, you need capital.
That is why Trump's ban on Huawei, which indicated everyone else in China is next, which was eventually proven to be true, the United States entity list was the biggest stimulus for the Chinese to finally develop self-sufficiency in semiconductor manufacturing.
Seems to me that 28nm is not important in terms of a goal, as that is a done deal. That tech should be known fairly well inside China. They should want their own fab inside China to manufacture it, and have that fab equipment to be American-free. This I think is kind of close.
Also, the Americans do not care about the 28nm, because that is how the technology market works. The older tech, although useful, do not make that much money compared to new tech. At 28nm, that is old tech, which eventually will go obsolete or go down in price so much that it comes a low profit item. So really, how much time and resources you want to waste on that or spend on that 28nm, that is up to how much money the company has to blow.
When Huawei announced they are building a fab for 45nm to be going to 28nm, that was for their own use. They were not going to make money off that investment. It was a test to see what they can do for themselves.
Note that once the Americans see the Chinese master 28nm, they probably flood the market with those chips.
Huawei needs 7nm now otherwise its smartphone business is dead. Xiaomi could be next etc. Chinese smartphone brands can disappear. Honestly I do not see contradiction in trying to develop advance nodes and become self sufficient at older nodes. This is strategically important and the I am sure the Chinese government will provide all the financial resources needed
They sold of Honor so that atleast the Honor brand can survive.
The immediate future hinges on Biden ofc.
Seems to me that 28nm is not important in terms of a goal, as that is a done deal. That tech should be known fairly well inside China. They should want their own fab inside China to manufacture it, and have that fab equipment to be American-free. This I think is kind of close.
Also, the Americans do not care about the 28nm, because that is how the technology market works. The older tech, although useful, do not make that much money compared to new tech. At 28nm, that is old tech, which eventually will go obsolete or go down in price so much that it comes a low profit item. So really, how much time and resources you want to waste on that or spend on that 28nm, that is up to how much money the company has to blow.
When Huawei announced they are building a fab for 45nm to be going to 28nm, that was for their own use. They were not going to make money off that investment. It was a test to see what they can do for themselves.
Note that once the Americans see the Chinese master 28nm, they probably flood the market with those chips.
28nm self-sufficiency is far from being close. The goal to achieve 28nm in 2-3 years is assuming everything is smooth. Just because everyone here is rapidly advancing the target every a few days doesn't mean they're aligned with the reality.
SMIC's 28nm fab in Beijing is geared towards domestic equipment. It'll cost $7+billion.
Huawei sold Honor, so that Honor can get chips. Honor can get any chip they want.
What I would like to see confirmed, is that Huawei factories still manufacture all of the Honor phones product line.
I have to disagree... the whole point was not to destroy Huawei but to control it... Huawei can’t make the chips necessary for that part of its business but it also doesn’t represent the greatest part of it’s business either... the main business is in telecoms equipment which doesn’t need the almost advance nodes... the US would have no problem supplying the chips for the consumer side since they still want the profits... Xiaomi like the others will not be touched otherwise Qualcomm is basically gone, since Apple has their own and Samsung is developing their own as well
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