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Most people don't realize but the biggest thing China has going on for it is the start-up scene in semiconductors. There's too much focus on the chip productio
by bgnn 1y ago
Most people don't realize but the biggest thing China has going on for it is the start-up scene in semiconductors.
There's too much focus on the chip production in the news, but the industry ecosystem is much bigger than that. Especially chip design and design automation are stagnated fields in the West because of the limited talent pool and lack of investment. You guys here are used to all the VC money, but in HW development world the story is different. There's simply a lack of investors to put down 10s of millions with 5-10 years horizon. Couple this with lack of talent: there aren't enough EE graduates with necessary training, you get a bleak situation. So most if the industry relies on foreigners from developing countries: Iran, China, India, Bangladesh.. Now that those Chinese EEs have better prospects at home, most of them are returning back to China to start their own companies.
Similar trend is happening in design automation tools. We have 3 monopolies in the West extracting 20-30 peecent of the revenue from the semicon companies. There are competitors showing up in China. They aren't on par yet but it's just SW, so it's a matter of time. Since there's competition their pricing is so much better too. Unfortunately we don't have access to these SW, but Chinese companies do.
- runlaszlorun 1y agoInteresting point. Would you say the US chip sanctions have given even more incentive for China?
- anonzzzies 1y agoThey have been pushing for independence for a while now but sanctions and tarrifs will push it all to go faster. And it is a big mistake: the west has some type of misplaced arrogance that china wont catch up that fast because asml, nvidia etc but I would not be so sure. Like more said here: a disadvantage is authoritarian but thats also an advantage: Xi can just command everyone to go one way and 'defeat the west'. And seems he is doing exactly that.
- bgnn 1y agoYes. It's the best thing happened for the Chinese semiconductor ecosystem. All those Chinese phones, networking equipment etc can't risk using the suppliers in the West as it can be shut down with a decree. Now Huawei, Xiaomi etc are funding so many start-ups and they are buying their products even if it's slightly worse than the state-of-the-art. The next generation of chips are going to be state-of-the-art for sure as there's not much of a gap. Chinese companies used to open design offices in the West to keep connected to the talent here. In the last 6 months they're massively divesting. This means EEs in China will be valued even more. Add this to 80% of the research in the field happening in Chinese universities now (as opposed to less than 10% 20 years ago), they have everything nicely aligned.