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> Of course, but if it can't develop finer lithographies, it might as well give up and declare bankruptcy right now. No, SMIC was in very good financial positi
by baybal2 6y ago
> Of course, but if it can't develop finer lithographies, it might as well give up and declare bankruptcy right now.
No, SMIC was in very good financial position. They work tax free, got a rather good niche of expensive old chips, and a status of the only first tier foundry in worlds biggest semiconductor market.
200mm is currently booked for years ahead, so they are not going anywhere for those years ahead at least.
People on this forum know very little of how the economics for microchips work. I want people to learn up this industry to a level where they wouldn't embarrass themselves without at least having a glancing doubt about what they say first.
- sudosysgen 6y agoSMIC works tax-free and enjoys massive government subsidy because the government is counting on them to progress to finer lithographies. If they give up on that goal, many of their government-given advantages disappear.
- baybal2 6y agoNear the entirety of semiconductor industry in China works tax free. From fabless to chemical, and material companies, to actual fabs. Every few years they throw some new tax exemption programs effectively making them perpetual. I don't see why would the specifically single out SMIC for that.