Chinese semiconductor industry

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The embargo and restrictions place upon Huawei might have hindered its core businesses but at the same it might have pushed Huawei to explore an expand into other segments. Huawei is a giant in the telecommunication sector and top player in the mobile phones business. But now Huawei could be a titan in all tech industry.
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Cloud and chips are much more important than phones for driving economic and technological growth and productivity increases.
 

gelgoog

Lieutenant General
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In the UK's defense it does seem to be the one of best fabs they do have left. It is pretty pathetic though. It is even worse than the fabs the Russians have. They certainly cannot expect to be paid more for it than what the Micron fab went for. The equipment is really outdated and the fab capacity isn't that high in modern terms at least to manufacture logic.

This deal is a lot more comparable than the Micron fab discussed in the article.
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GlobalFoundries sold Fab 3E in Singapore to Vanguard International Semiconductor in late 2019 for $236 million. That manufactures 35,000 200mm wafers at 180nm.

This article talks about the UK fab being sold for £63 million, plus they will pay £20 million for an HSBC debt, and £18 million to the Welsh government. That is $139 million. Considering it is a highly distressed asset with slightly lower capacity and two years have passed (an eternity in semiconductor terms) the deal does not seem that bad to me. $1 billion like the article claims the factory is worth? Ludicrous.

It is not like China or that Chinese company will be getting a really good deal out of it. The previous owner of the fab seemingly will still keep their IP so it seems like the Chinese will only get the fab. For what it's worth Texas Instruments bought a fab in Chengdu, China, over a decade ago from SMIC, that fab also manufactures with 200mm wafers at 180nm. The technology itself is old hat.

Nexperia, the company they are talking about, already owns a similar 200mm wafers fab in the UK at Manchester, and another similar fab in Germany at Hamburg. For Nexperia this fab is useful because they mostly manufacture discrete electronics like transistors.
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horse

Colonel
Registered Member
huhhh, 200mm wafers at 180nm lithography? why China bother really :rolleyes:

It is the potential.

The current equipment in that fab, has no potential.

But the new owners, flushed with cash, can upgrade the equipment. Therein lies the potential.

That is what business is about, opening doors.

:)
 
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