We'll see much more on Aug 28th when SMIC has their next earnings announcement.
Huawei, the leader in Chinese semiconductor development… ‘Life or death’ for SMIC 5nm mass production next year
- Thread starter Daniel Nenni
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Like an old Chinese proverb, "Slap your cheeks to make them swollen so you look fatter". That's exactly what CCP's HW and SMIC are doing.
(in the old days due to general scarcity of food, fat persons are often admired as being wealthy).
I don't think they care about cost. They will keep throwing money on it even if it's only 5% yield.
Sadly the average poor Chinese person on the street pays the ultimate price for CCP's craziness.
(in the old days due to general scarcity of food, fat persons are often admired as being wealthy).
I don't think they care about cost. They will keep throwing money on it even if it's only 5% yield.
Sadly the average poor Chinese person on the street pays the ultimate price for CCP's craziness.
I agree with Jensen on this one. Depriving China of US chips only makes Huawei and SMIC stronger. We can sell N-1 or N-2 GPUs and fend them off globally. Whoever controls the chips controls the world!
There are directives in place where hardware sold to the Chinese government must be made in China. So there is a large captive market for these chips already. Where they do not need to compete in price with TSMC.
If anything SMIC cannot meet market demand for advanced chips even at current prices.
And it is quite clear these chips can even compete in the open market, since Huawei base stations and smartphones are made at SMIC and sell reasonably well.
If anything SMIC cannot meet market demand for advanced chips even at current prices.
And it is quite clear these chips can even compete in the open market, since Huawei base stations and smartphones are made at SMIC and sell reasonably well.
Here’s a naive question, but maybe you know. Has Huawei evolved their Balong and Tiangang 5G base station chipsets since they came out in 2019 ? I think those were in 7nm TSMC and that Huawei just stockpiled ?
The number of chips are far larger for smartphones and they, as consumer products, need yearly refreshes, so not possible for the Puras and Mates. But it sure feels like SMIC is indeed at a capacity/yield/geometry size wall trying to produce enough good chips for Huawei Kirins (smartphones) and Ascends (AI).
How does this left pocket right pocket approach work?
Which Company take the financial hit , SMIC or the Company Purchasing from them?
"Cannot meet Market Demand at Current Prices" means what?
The price is too low for them to make any money?
They produce what they can at the price demanded?
What left pocket right pocket?
The Chinese government demands home grown hardware and companies like private company Huawei supply it. Huawei fabs chips at SMIC. Another private company, but with some government owned shares.
No one is taking any hit.
Try comparing the prices of Huawei smartphones to their competitors and then tell me again they aren't price competitive in their segment.
Raw chip performance might be lower but Huawei control the whole stack including software. They focus on other features like foldability or better cameras to make their products more compelling.
In the case of base stations, Huawei made their own ASICs which then competed against X86/FPGA solutions from competitors. Huawei's basestations were much cheaper, did not require as advanced chips processes, and were lower power.
I think Huawei sell millions of base stations a year. Those have more hardware than a smartphone. There is no way they are still using stockpiled chips.
The Chinese government demands home grown hardware and companies like private company Huawei supply it. Huawei fabs chips at SMIC. Another private company, but with some government owned shares.
No one is taking any hit.
Try comparing the prices of Huawei smartphones to their competitors and then tell me again they aren't price competitive in their segment.
Raw chip performance might be lower but Huawei control the whole stack including software. They focus on other features like foldability or better cameras to make their products more compelling.
In the case of base stations, Huawei made their own ASICs which then competed against X86/FPGA solutions from competitors. Huawei's basestations were much cheaper, did not require as advanced chips processes, and were lower power.
I think Huawei sell millions of base stations a year. Those have more hardware than a smartphone. There is no way they are still using stockpiled chips.
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