Comments by "D W" (@DW-op7ly) on "Yahoo Finance" channel.

  1. The Chinese had “virtually” no chip making ability/foundries 6 years ago thanks to the USA who did the job for the Chinese Government trying to get their people to use homegrown chips China is now expected to take over those legacy chip markets If the USA was smarter instead of cutting off China from semiconductor chips and equipment for manufacturing They should have lowered prices even more, and dump even more chips on China Instead their idea was to force the hand of Chinese people at the time content with cheap imported chips. Hope they could not innovate When China leads the world in 37 of the 44 critical technologies of the future 🙄 At one point China was importing 300 billion in chips a year Now they will probably be exporting around 200 billion dollars worth of their own homegrown chips per year 👇 How Close Is China to World Dominance in Legacy Semiconductors? 27-02-2024 | By Paul Whytock * Bread and Butter Technology Obviously, China would like to be a major player when it comes to high-end sophisticated semiconductor devices, but that doesn’t mean they are not interested in the bread-and-butter end of the market, particularly when it comes to legacy products. In fact, they are very interested in the legacy market, and there are some very good reasons why. Legacy devices make up a huge amount of global chip sales. Most chips manufactured today are not advanced chips but legacy chips, and around 71% of devices * China's Aggressive Expansion in the Semiconductor Industry In September 2023, Reuters reported that China was set to launch a new state-backed fund aimed at raising about €43bn to support its chip industry, and according to research analysts, the Rhodium Group, in less than ten years, China is expected to domestically add nearly as much 50–180nm wafer manufacturing capacity as the rest of the World. The views of industry analysts and observers vary, but generally speaking, it’s thought that 22 wafer fabs are being built in the country, and there is an overall plan to create a total of 30 new wafer fabrication plants. Many of these will concentrate on the production of legacy devices. As for market share, industry intelligence gatherers Trendforce believe China’s legacy chip manufacturing base could provide as much as 30% of the global demand for older devices. ElectroPages
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  5. What most people don’t get? Is it is US multinationals making the lion share of those profits inflating the trade deficit between China to the USA Where Chinese companies mostly trade with their Belt and Road country partners these days These US multinationals are the ones sending you that junk These US multinationals are still using the same highly polluting labour intensive factories formula. As they were using more and more illegal labour smuggled in from South East Asia. Or more and more automation in their wholly owned factories in China these days These are the same companies who got those trump Corporate tax cuts you for sure cheered about Same companies based in China who derived 392 billion in sales into the Chinese domestic markets in 2018 when trump started his trade war Same companies averaging 20 to 40% of their earnings from China whose high flying stocks are in your 401k/Pensions Same companies who the American farmer and consumer were sacrificed. So the USA could try and get “more” or “better” access for the US multinationals, into those Chinese Domestic markets during the trade war Same companies whose HQ is in a North American city you can easily go stand outside and protest at…. Why didn’t China pull the nuclear trade option and boot these US companies you might ask? They don’t believe in a zero sum game type of thinking As I can show you during the trade war. China didn’t pull out their big trade weapons, in fact they were lowering tariffs to most countries not raising them 👇 Trump’s ‘trade war’ with China won’t be so easy to win Having learned these value chain lessons, Beijing has worked hard to bring more of the high-value-adding parts of value chains into China, and to build hi-tech industries in which it can establish a globally competitive position. China has successfully done this in areas like high-speed trains (CRRC), digital telecoms networks (Huawei), drones (DJI) and hi-tech batteries (BYD). Trump’s team is not wrong to be worried about China’s competitive emergence here, and to target these new-tech sectors in the latest trade war sortie. But here’s the problem: China exports almost none of these new-tech products to the US, making US tariff threats meaningless. Rather, they go to developing economy markets – many embraced by the Belt and Road initiative – where China has succeeded in building a hi-tech, high-value brand reputation. As Trump’s team will quickly learn, the challenge of finding China’s pain points is bigger than expected: for a decade China’s priority has been to base growth on the domestic consumer economy and reduce reliance on the low-value-adding export processing industries (many of which are US- or Hong Kong-owned and concentrated in the Pearl River Delta) SCMP
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