Chinese semiconductor industry

Chish said:

Hard for Chinese companies to collaborate with Ali Baba which was listed in US and majority ownership are foreign institutions. Jack Ma owns maybe only 15% shares? Biggest share holder is Softbank (Japanese) the rest are westerners. Ali Baba is a Chinese run company making money in China but owned and benefits mainly by foreigners. Ever wonder why the government was cracking down on Ali Baba and the West was making a big fuss over "China crackdowns on tech companies"?

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Alibaba has a unique governance structure, very different than that of the typical public companies. It's kind of like a partnership. Owning a big chunk of the Alibaa shares does not automatically give one the equal say in running the company.

This is what I can find about it in English:

Basically, Alibaba is run by a steering committee whose memeber are the managers of Alibaba and its related companies. What makes this steering committee special is that its members can "nominate majority of the board of directors".

Alibaba was not punished because of the foreign ownership. It was their monopoly practices that ran at odds with the Chinese government's new priority: social equality.

The foreign owernship in Alibaba are the unfortunate result of shortsight of Chinese domestic investors in the early days. It is said that they all turned their back on Jack Ma. He then had to look for the needed funding abroad. I think Tencent has the same story, too.

The investors, regardless of their allegiance. deserve the return from their investment. This is simply how the game plays.

Read up on common prosperity, the rules have changed.

gadgetcool5 said:

China should focus on quantum computing, because it is less than 2 years behind the West at most. This area has far greater potential rewards for China than traditional EUV semiconductors, let alone DUV. It is far easier to get ahead in a new and emerging area than an already established area. By 2030 China could easily be ahead of the West in quantum computing.

If you look at 5G, the reason why Huawei was able to get ahead is because telecommunications technology was still in its infancy then. There was uncertainty in standards between CDMA and GSM, the US bet on CDMA and lost. Hence Huawei had an opening.

Similarly, currently the opening is in quantum computing. It's not that China should not invest in traditional semiconductors, but that even with massive investment it may still be playing catch up in 2030. You really want to be ahead, not playing catch up. The best quantum computers in the future will run laps around the best traditional semiconductors.

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You are saying China should put all her eggs in one basket and betting her entire future on an unproven system?

Bloomberg article about chinese spies using huawei. Its behind a paywall, so i cant see beyond the intro. Does anyone knows anything more about this?

Orthan said:

Bloomberg article about chinese spies using huawei. Its behind a paywall, so i cant see beyond the intro. Does anyone knows anything more about this?

Please, Log in or Register to view URLs content!

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The Australians say they discovered this hacking attempt by the CCP via a patch to be installed on Huawei gear, several years ago.

The Americans praise the Australians for coming out with this information.

When asked for details of the hack, sorry, that is still confidential.

Then American think-tank-land weighs in with their comments of how protection of data is important, and best way to protect it is to curtail Huawei.

In short, same old allegations, and still they do not prove proof for those allegations.

Same story for the last 3 years. Nothing new.

horse said:

The Australians say they discovered this hacking attempt by the CCP via a patch to be installed on Huawei gear, several years ago.

The Americans praise the Australians for coming out with this information.

When asked for details of the hack, sorry, that is still confidential.

Then American think-tank-land weighs in with their comments of how protection of data is important, and best way to protect it is to curtail Huawei.

In short, same old allegations, and still they do not prove proof for those allegations.

Same story for the last 3 years. Nothing new.

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aah same old same old.

Orthan said:

Bloomberg article about chinese spies using huawei. Its behind a paywall, so i cant see beyond the intro. Does anyone knows anything more about this?

Please, Log in or Register to view URLs content!

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Bloomberg is an exposed lier on reporting "Chinese espionages".

A few years ago it once reported that China hacked the supply chain of Amazon, Microsoft and Apple by planting a "spy chip" in their computer server mainboards. The report is full of unproven claims from "anonymous sources". Bloomberg upon requests refused to give any contact info of the sources, citing to "protect the sources".

Amazon, Microsoft and Apple issued strongly worded statements dismissing the Bloomberg report as being groundless and false. They thoroughly checked their stock and found nothing. Bloomberg's readers demanded the report authors to come forward with solid evidence, i.e. the mainboard with the said spy chip. Of course neither Bloomberg nor the authors could. What Bloomberg depicted as the "spy chip" in the report's cover photo, was later identified by someone as in fact a widely used, 5 cent a piece power regulation chip.

One of the "anonymous sources" the authors interviewed later responded saying that the authors twisted his words. He said that, in the interview, he only explained to them that from the supply chain attack point of view it is in theory possible for China to do so. The reporter authors then made such theoretical possibility sounding as if it was already the reality in their report.

What's even more ironic is that the same authors had been caught fabricating "China hacking" stories previously.

There you go, your trusted source of information.

Xsizor said:

A very bad way of thinking. Bad for China and China's aspirations to be exact.
China never intends to decouple or shut off. It has learned the very important lesson that building bridges and dependencies are better than destroying them and closing gates. Foreign capital must continue to come to China ( otherwise other regions will suck them up). Foreign capital is a finite quantity and the investors who chose to invest in China are taking big risks. China grew, in part due to FDIs.

As long as the capital stays in China, it is good for China. Employment, technology, economy, wages etc grows. Softbank, for example, will have a stake in Alibaba's future or Chinese economy in general.

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The US has a cap on how many % foreigners can own of a US company, like apple, amazon and tesla.