Posted on 10/25/2020 4:12:29 PM PDT by SeekAndFind
China has put all its “chips” into China’s fledgling semiconductor industry.
Many companies are charging into the semiconductor industry. The trend, with the encouragement of the Chinese Communist Party (CCP), is occurring because of pressure from the Trump administration to cut off Chinese technology companies from U.S. chips.
But this latest chip rush may also create vast inefficiencies, divert local resources into wasteful ventures, and usher in a 21st-century version of the “Great Leap Forward”—the disastrous 1950s plan by Mao Zedong to surpass the West in steel production that resulted in mass famine and economic despair.
The need to invest in indigenous semiconductor capabilities is borne out of necessity. China’s chipmaking industry has increasingly been marginalized by U.S. pressure.
Last month, China’s biggest chip fabricator, SMIC, was put on a special entities list by the U.S. Commerce Department, meaning it needs special permission to work with U.S. suppliers. The move bars SMIC from importing critical materials and equipment from U.S. suppliers needed to manufacture chips, and is another blow to Chinese telecommunications giant Huawei, which is SMIC’s largest customer and itself banned by the United States.
In another hit to China’s chip ambitions, global chip giant Intel Corp. on Oct. 21 agreed to sell its China-based NAND flash memory manufacturing business to South Korea’s SK Hynix for $9 billion. Not only were no Chinese candidates considered as a potential buyer—due to Intel’s fear of U.S. rejection of the deal—the sale has strengthened a regional semiconductor competitor in South Korea.
(Excerpt) Read more at theepochtimes.com ...
Only if they can reverse engineer chips
RE: Only if they can reverse engineer chips
I was speaking to an ex-Chinese microprocessor engineer who has since migrated to the USA and is doing software instead. He said ZTE has a chip design R&D division.
Ahh, so ZTE actually is doing Research and Development?, I asked.
Nope he said, R&D stands for Reverse And Duplicate.
The only “team red” I’m for is AMD.
Are the gonna have farmers build micro fabs in the back yard?? That worked awesome for steel and chips are so much simpler. Should work.
Was good until they loaded up the furnaces with farming and garden tools to make their village production quotas.
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