Chinese semiconductor industry

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localizer

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No. The MFN tariff rate for lithography is 0% and the general tariff rate is 100%. The Netherlands has MFN status from China because the Netherlands and China are both members of the WTO
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Yeh seems to be the case


What if the shortage of high end chips in China incentivizes better software programming practices to get the most out of chips? Tons of computing power is wasted on bloated and inefficient code that is easy to write, but not to debug these days.

There's plenty of 2nd hand hardware for end users/software developers.

A used iPhone 6 is probably better than what Huawei can make now :(
 
D

Deleted member 15949

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What if the shortage of high end chips in China incentivizes better software programming practices to get the most out of chips? Tons of computing power is wasted on bloated and inefficient code that is easy to write, but not to debug these days.



Then who is this aimed at?
No one. The ordinary tariff rate is always going to be arbitrarily higher than the MFN rate. The ordinary rate only applies to countries not in the WTO and that don't have a trade agreement with China that affords them MFN-like status or ends up treating them as a FTA partner.
 

Weaasel

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Actually, China is ahead of Taiwan and South Korea in EUV and DUV lithography. Soon will see spring up of supply chain in those areas in China that will be envy for Taiwan and South Korea.

The above two are only end users and had to pay premium for those equipments.

China can set itself free with lower cost and restrictions

US is determines to steal TSMC and Samsung know-how by forcing it them setup advanced fabs in US. US will eventually master the 5nm, 3nm tech from those two.
Japan's restrictions and controls placed beginning in 2019 on South Korea in exports to Korea of photoresists, by hydrogen fluoride etching gas, and polyamides was a big jolt to Korea to realize the extent to which it is so behind with respect to domestic sources of sophisticated materials necessary for high end IC chip manufacturing. The Korean government in the past did not make much an effort towards maximizing indigenous capability in the supply chain of IC chip manufacturing from production of silicon wafers, through to developing materials and equipment necessary for such procedures DUV lithography and etching equipment. Being part of the US Alliance system and having only a handful of companies, most notably Samsung Electronics and SK Hynix involved in chip manufacturing, there was never much non-commercial urgency.
 

Weaasel

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May be the second but ASML CEO clearly stated that DUV can be shipped from the Netherlands to SMIC. Only parts that are directly shipped from the US are blocked. You can read ASML Q3 transcript. Regarding the other equipments I was hoping that local + non US could fill the gaps....

ASML and the Netherlands are very easily amenable to US persuasion not to sell China equipment that the United States does not want Chinese companies to gain possession of.
 

WTAN

Junior Member
Registered Member
Wait, isn't that the same as vincent's first option ("either the 14/28nm node revenue dropped a lot") just with additional details?


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This is indeed interesting.
I can't imagine why they'd put import tariffs on foreign DUV machines if they didn't have a domestic replacement ready to be procured by customers.

@WTAN, thoughts?
Several units of the SMEE 28nm DUVL should be delivered to a number of customers for testing and verification by the middle of the year.
China cant really place tariffs on the Lithographs from the Netherlands and Japan as it is against WTO rules.
However i recommend that China place Anti-Dumping duties on the Lithographs and Semiconductor Production machinery of foreign countries.
It has long been the strategy of foreign companies to dump their equipment in the Chinese market once they find out that local Chinese companies have caught up in a particular type of machinery segment.
This is done with the aim of hurting the Chinese competitors.
They have been successful so far.
Its time for the Chinese Govt to take action against this illegal and anti-competitive action.
Anti-Dumping Duties of 100%-200% should straighten them out.
 

ansy1968

Brigadier
Registered Member
However i recommend that China place Anti-Dumping duties on the Lithographs and Semiconductor Production machinery of foreign countries.
It has long been the strategy of foreign companies to dump their equipment in the Chinese market once they find out that local Chinese companies have caught up in a particular type of machinery segment.
This is done with the aim of hurting the Chinese competitors.
They have been successful so far.
Its time for the Chinese Govt to take action against this illegal and anti-competitive action.
Anti-Dumping Duties of 100%-200% should straighten them out.
@WTAN

No need to, I think the hard lesson had been learned!!! There is NO SUCH THING AS SANCTION proof if you buy a foreign equipment. Now that China is on a crucible of a Lithographs and Semiconductor Production machinery breakthrough and independence, it's unpatriotic and idiotic on the Chinese company to place their faith in them, the trust has gone and its time to move on and place your faith in yourself and your country.
 

Oldschool

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US think tank placed smic , cmxt, ymtc under microscope.

I was surprised trump didn't go after cmxt, ymtc.

Cmxt as of Q4 2020 had 45K wafer for 19nm DDR4 production and 82K wafer Q1 2021, soon replacing nanya 4th spot behind Samsung, hynix, micron.

Besides semi, China relying on Japan for high end CNC, 1/3 of Japan of export of CNC goes to China.
Top 10 CNC has 4 japanese, 3 Germany, 2 US.. none from China.
 

Hendrik_2000

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US think tank placed smic , cmxt, ymtc under microscope.

I was surprised trump didn't go after cmxt, ymtc.

Cmxt as of Q4 2020 had 45K wafer for 19nm DDR4 production and 82K wafer Q1 2021, soon replacing nanya 4th spot behind Samsung, hynix, micron.

Besides semi, China relying on Japan for high end CNC, 1/3 of Japan of export of CNC goes to China.
Top 10 CNC has 4 japanese, 3 Germany, 2 US.. none from China.

I don't know which report are you referring to but China did dominate the low to medium level of CNC and increasingly in the high end. Certain specialize CNC machine like turbine blade CNC china still import from Swiss. Of course highly precession servo motor still use foreign though they normally sourced from domestic factory. This report is from 2018 and thing change fast
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Global and China CNC Machine Tool Industry Report, 2019-2025​


With the sustained growth of the global economy, the consumption in the machine tool sector will continue to grow by more than 3.0% in 2019, which will propel the global CNC machine tool industry whose output value outnumbered $70 billion in 2018 to escalate steadily. As the world's leading producer and consumer of CNC machine tools, China garnered the CNC machine tool output value of over $6 billion (by the exchange rate 1:6.6174) in 2018, a more than 10% share of the global total.

In 2018, China CNC machine tool industry characterized the followings:
  • CNC level: China had a CNC rate of machine tools at 29.7% in 2018, far lower than Europe, America, Japan and other developed countries (Japan: over 90%; Germany: above 75%; the United States: beyond 80%). Wherein, the CNC level of metal cutting machine tools was 39.0%, higher than that of metal forming machine tools (only 9.9%).
  • Breakdown products: Among CNC machine tools, CNC lathes and machining centers are used more widely, with their output seizing nearly 50.0% of the total output of CNC machine tools in 2018. In the field of CNC lathes, small and medium-sized horizontal lathes prevail, but more than 85% of high-end small lathes in China needs importing.
  • Technical level: China relies on the import of high-end CNC machine tools, and the localization level is less than 20%; the localization level of medium and low-end CNC machine tools is as high as over 85%, but the core components herein still hinge on foreign technology. More than 80% of CNC systems used for the China-made ordinary CNC machine tools are imported, and at least 85% of servo systems/motors come from abroad.
  • Competitive landscape: the leading Chinese CNC machine tool manufacturers are comprised of Dalian Machine Tool, Shenyang Machine Tool, Qinchuan Machine Tool & Tool, JIER Machine-Tool, Ningbo Haitian Precision Machinery, etc. However, in the past two years, the giants have been confronted with difficulties successively (Shenyang Machine Tool suffered losses ceaselessly, Dalian Machine Tool was asked for reorganization and rectification due to breach of bonds), causing a continued slide in industrial concentration. In 2018, CR10 was less than 30%.
  • As some foreign-funded enterprises set up CNC machine tool production bases or R&D centers in China, China’s local production capacity and level will be improved in the future, which will further promote the comprehensive competitiveness of CNC machine tools made in China.
The Global and China CNC Machine Tool Industry Report, 2019-2025 mainly deals with the following:
  • Technology, classification, industry chain, etc. of CNC machine tools;
  • Global and China’s machine tool output, consumption, import and export, competitive landscape, etc.;
  • Overview of the global CNC machine tool market; market Size, import and export, etc. of CNC machine tools in major countries (Japan, Germany, South Korea);
  • Development environment, output, demand, import and export, competitive landscape of CNC machine tools in China;
  • Production scale, import and export, competitive landscape, etc. of major CNC machine tool products (CNC lathes, CNC grinders, machining centers);
  • Market size, major suppliers, etc. of CNC machine tool core components (CNC systems, servo systems, electric spindles, etc.);
  • Market size, CNC machine tool applications, etc. of downstream applications (automotive, aviation, railroad equipment, electronic information, etc.);
  • Operation and CNC machine tool business of 12 foreign and 20 Chinese CNC machine tool manufacturers.
*The Chinese Version of this Report is Available on Request.
Note: Product cover images may vary from those shown

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Completion of the Third Plant at YASKAWA ELECTRIC (SHENYANG) CO., LTD​

NewsJul 25, 2018

Yaskawa Electric Corporation (head office: Kitakyushu, Japan; Representative Director and President: Hiroshi Ogasawara) is pleased to announce that a completion ceremony was held on June 29, 2018 of the third plant at Yaskawa Electric (Shenyang) Co., Ltd. (Economic and Technological Development Area, Shenyang, China) and started the operation.
  • https://www.yaskawa-global.com/wp-content/uploads/2018/07/shenyang_01.jpg

    The third plant at Yaskawa Electric (Shenyang)

1. Purpose of the Establishment of the Third Plant​

Investments in factory automation and installation of robots are accelerating due to advancement of industrial structure, decrease in the labor force, soaring labor costs, etc. and a demand for machine tools, manufacturing equipment, industrial robots and so on is expanding in China. In addition, due to the need to rollout products to meet the needs of the Chinese market, local product development is already under way.

As demand for servo motors, servo amplifiers and robot controllers, which are the main components of automation equipment, is expected to further increase in the future, Yaskawa Electric has expanded the third plant to strengthen production capacity.

In this third plant, Yaskawa Electic introduces the latest production management system with the concept of “visualization”, realizing real time management of production status. By introducing this system, it will establish a system that can share global production data in collaboration with mother plant in Iruma, Saitama, Japan.

In addition, in the development organization, Yaskawa Electric will combine the development functions which is currently situated at two areas in the facility to the 3rd plant to promote improvement of development capability and efficiency. Yaskawa Electric will accelerate product development to respond timely to customer needs.

2. Overview of the Third Plant ​


Address: No.5, 34A, City Development Road, Economic and Technological Development Area, Shenyang 110141, China
Floor area: 15,700 square meters
Start of operations: June 2018
Types of production: AC servo motors, servo amplifier, robot controller, spindle motor for machine tool

3. The Completion Ceremony​

Guests from government officials including Deputy Mayor of Shenyang City attended the completion ceremony, and the company explained the aim of China production of servo motors and servo amplifiers as well as the outline of the new plant.
  • https://www.yaskawa-global.com/wp-content/uploads/2018/07/shenyang_02.jpg

    Scene from the completion ceremony

Press contact:
 
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