Protectionists complain about Chinese market dominance, yet Chinese companies are the only ones entering the DRAM market in response to the dramatic increase in demand.
It is way too late to be starting a new chip fab for it to be relevant to the current market. If they are producing reliable chips 5 years from now that’ll be fast.
Not likely. It doesn’t matter how much slave labor you throw at it, getting a new fabrication machine to the necessary precision to make modern chips requires a lot of time.
Foxcom assembles sub models into complete products. Still higher than slave labor level skills, but not as high as chip fabrication I admit. You need a skill base to assemble phones at a high level.
Understanding it’ll take some time for any competition to have an impact, it’s still nice to see that someone, somewhere in the world is looking at this manufactured scarcity and deciding not to exploit it.
I brought up last time that if RAM prices keep going up and up, it makes more economic sense to make more factories/facilities.
Theres always those people who say that it doesn’t make sense to make new facilities, but I really dont see chip shortages to stop. With climate change being a thing and supply chain issues popping up more and more, I just dont see an end within the next 10 years. Makes more sense to bring some of that in house.
I wouldn’t enter a cartel-protected market either if I had to finance that myself. If I had a captive bloc-sized market at home though…
China is big. There are a lot of customers there. And the government tends to plan long-term and is heavily subsidizing chip making tech for geopolitical reasons. Entering the western market is high-risk. Entering the Chinese market as a Chinese company and then also selling outside China after scaling up is low-risk.
Protectionists complain about Chinese market dominance, yet Chinese companies are the only ones entering the DRAM market in response to the dramatic increase in demand.
It is way too late to be starting a new chip fab for it to be relevant to the current market. If they are producing reliable chips 5 years from now that’ll be fast.
China speed will kick in and it will be next year they will own the market.
Not likely. It doesn’t matter how much slave labor you throw at it, getting a new fabrication machine to the necessary precision to make modern chips requires a lot of time.
I mean making the machines to make chips and making a factory that uses said machines are two different things.
There are already factories in China making DDR5 and DDR4 ram now days.
Huawei would just provide the support and resources needed to scale up a new large factory.
No slave labor needed. All you need is a modern, advanced, high skill, responsive industrial base which China has.
True.
Are they actually fabricating the silicon, or just packaging it?
Sure, like the people working at Foxconn:
https://truthout.org/articles/a-suicide-survivor-the-life-of-a-chinese-migrant-worker-at-foxconn/
They are making it from scratch. There are lots of sources but this is the first one I found. I assume they package it as well.
https://www.tomshardware.com/pc-components/ddr5/chinese-memory-maker-cxmt-enters-the-mainstream-consumer-memory-with-corsair-vengeance-ddr5-kit-chinese-made-dram-emerges-as-an-antidote-for-crushing-shortages
Foxcom assembles sub models into complete products. Still higher than slave labor level skills, but not as high as chip fabrication I admit. You need a skill base to assemble phones at a high level.
Huh. I was skeptical of “China speed” but they were right. Lol.
https://www.techpowerup.com/350726/chinese-cxmt-to-match-microns-dram-manufacturing-capacity-this-year
I’m just glad for lower ram prices.
China speed proves real every time though
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My guess is this is why Huawei wants in on the action
https://www.techpowerup.com/350726/chinese-cxmt-to-match-microns-dram-manufacturing-capacity-this-year
China speed was even faster than you predicted. Lol.
They have a domestic market to serve first. And they are fast at scaling up - but not that fast.
Give them half a decade.
Maybe they are aiming for something like Temu: ultra low quality, super cheap and ready to flood the market in 6 months
Temu for RAM? Sign me up!
Understanding it’ll take some time for any competition to have an impact, it’s still nice to see that someone, somewhere in the world is looking at this manufactured scarcity and deciding not to exploit it.
I brought up last time that if RAM prices keep going up and up, it makes more economic sense to make more factories/facilities.
Theres always those people who say that it doesn’t make sense to make new facilities, but I really dont see chip shortages to stop. With climate change being a thing and supply chain issues popping up more and more, I just dont see an end within the next 10 years. Makes more sense to bring some of that in house.
I wouldn’t enter a cartel-protected market either if I had to finance that myself. If I had a captive bloc-sized market at home though…
China is big. There are a lot of customers there. And the government tends to plan long-term and is heavily subsidizing chip making tech for geopolitical reasons. Entering the western market is high-risk. Entering the Chinese market as a Chinese company and then also selling outside China after scaling up is low-risk.