The chips war will be the Waterloo of the USA. If China
succeeds in making high end chips and lithography machines en masse, the
USA has nothing left to deal with China. The 7nm Kirin 9000 chips made
by SMIC sent the USA into hysteria, coming like a bolt of lightning.
Now
the USA using the media is trying to start to propagate that SMIC will
not be able to produce this chip in bulk for the Chinese market. What
SMIC can and cannot do is not for the West to dictate. The 7 nm chip was
thought of as an impossiblity currently, without the ASML EUV
lithography machines, and cited as a 7 year lag time mission for China,
which SMIC rubbised away in just three years. How SMIC did it was even
more puzzling to the confused USA. They are going after TSMC, thinking
it was with their help that SMIC could do so, which is barking up the
wrong tree.
There is now talk that the USA is making an attempt
to flood the market to lower the prices of some chips to kill the
Chinese rising chip industry players. Already, chipmakers in the USA,
South Korea and Japan are struggling with huge losses, so is it
logically sound to ask them to lower prices to kill off Chinese players
in the chip industry? Cutting their noses to spite their faces is more
likely. Who gets killed in the end is still not certain?
China
should stock up those chips sold by the USA chipmakers at discounts, and
see how long those USA chip makers can last using dumping. Just like
keeping the ban on Japanese seafood, let us see how long Japan can keep
deep freezing their catch. Like the Fukushima nuclear wastewater, the
piling up cannot last forever and some solution has to be found to solve
the problem.
Anonymous
PS. China already making 5nm and 3nm chips plus chip making machine. It is the end for the American, Japanese and South Korean chip makers. They can never make the chips cheaper than the Chinese.
2 comments:
China has huge amounts of financial reserves, cash or otherwise. If the yanks dump chips to try and kill off the Chinese chip makers, as the author says, China should buy them up for use in its thriving manufacturing sector. The yanks who live on debt have no savings and will just bleed to death. As if they needed help to commit suicide. As of today, the sickest country on earth is racking up deficits like there's no tomorrow. It's like a gambler in a casino keep doubling his bets hoping to break even. But the odds always favour the casino and thus these sickos are getting deeper and deeper in debt. It's like getting stuck in quicksand, the more you resist, the deeper and faster you sink.
The Chips War is actually a blessing in disguise for China, which otherwise it would not be putting so much resources into making itself less dependent on the USA, the West, Japan and South Korea for high end chips.
The ones that will suffer will be the chip manufacturers of countries that forced China to make itself self sufficient. They are digging their own graves. They wanted China to fall into it, but they are burying themselves.
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