Chinese semiconductor industry

PUFF_DRAGON said:

Yes. [Volkswagen] would probably just stop doing business [in China, if China paid for imported cars with RMBs only].

Click to expand...

You completely ignored a significant point I made: in 2019 Volksvagen sold as many cars in China as in Germany. According to you, the company would stop its business in the Middle Kingdom. China would not even notice this as the country has lots of eager local carmakers. Volkswagen would willingly give up its market share in China, which is 80% of its global market -- yeah, right.

The fact that China hasn't already demanded that the Europeans take payment in RMB when they buy so much already is indicative that they cannot.

Click to expand...

No. China can already force Volkswagen and Airbus to take RMBs but has chosen not to do so. Yet. Perhaps because China still has too many US dollars. If the Germans want the US toilet paper in exchange for cars and airplanes, let them take it.

You also misunderstand what a reserve currency is.

Click to expand...

I did not say a word about reserve currencies. And neither did you in the comment to which I replied.

China can do it once they have domestic replacement for all imports. Which they have not yet but will soon be able to.

Errata.

Nutrient said:

Volkswagen would willingly give up its market share in China, which is 80% of its global market -- yeah, right.

Click to expand...

China is more like 50% of Volkswagen's global market. China is 80% of the German+China market though.

I did not say a word about reserve currencies. And neither did you in the comment to which I replied.

Click to expand...

Looks like "reserve currency" were the last two words in your comment. Apologies. I still have no intention of discussing it, however.

It should be pointed out that the US does not allow anyone to buy anything just because they have dollars. CFIUS pretty much represents a ban on all Chinese tech investment in the US (and a lot of non-tech investment). Anyone talking about how an open capital account means foreigners can buy American stuff freely is regurgitating Western propaganda to such a comical degree that they should be looked upon with suspicion.

gadgetcool5 said:

It should be pointed out that the US does not allow anyone to buy anything just because they have dollars. CFIUS pretty much represents a ban on all Chinese tech investment in the US (and a lot of non-tech investment). Anyone talking about how an open capital account means foreigners can buy American stuff freely is regurgitating Western propaganda to such a comical degree that they should be looked upon with suspicion.

Click to expand...

Correct, which is why China is now dumping US dollar back by buying commodities from the US, hyperinflating the dollar in the process.

gadgetcool5 said:

It should be pointed out that the US does not allow anyone to buy anything just because they have dollars. CFIUS pretty much represents a ban on all Chinese tech investment in the US (and a lot of non-tech investment). Anyone talking about how an open capital account means foreigners can buy American stuff freely is regurgitating Western propaganda to such a comical degree that they should be looked upon with suspicion.

Click to expand...

This means these US dollars will end up buying resources, from Lithium in South America, corn in US farms, LNG from Qatar and the US, chips from S. Korea and Taiwan, coal from Australia, and so on and on, causing commodity and resource prices to go up. This resulting in exporting inflation that boomerangs back to the US.

Enjoy the cold winter as your heating bills go up.

gadgetcool5 said:

It should be pointed out that the US does not allow anyone to buy anything just because they have dollars. CFIUS pretty much represents a ban on all Chinese tech investment in the US (and a lot of non-tech investment). Anyone talking about how an open capital account means foreigners can buy American stuff freely is regurgitating Western propaganda to such a comical degree that they should be looked upon with suspicion.

Click to expand...

Same in europe after China bought Kuka, a whole set of alarms went off.

Tam said:

This means these US dollars will end up buying resources, from Lithium in South America, corn in US farms, LNG from Qatar and the US, chips from S. Korea and Taiwan, coal from Australia, and so on and on, causing commodity and resource prices to go up. This resulting in exporting inflation that boomerangs back to the US.

Enjoy the cold winter as your heating bills go up.

Click to expand...

Do you suggest buying energy related etf as prices are going up?

To the experts, do the Chinese had problems regarding its usage of the ARM architecture? Is China ARM a separate entity from its parent? And Alibaba investment in Chip design is not enough they need to go into Foundry business cause who will FAB their chip?

from CnTechPost

Alibaba reportedly to release Arm server chip​

2021-10-18 10:15:29 (GMT+8)

The chip has 128 cores and is built on a 5nm process, making it the most advanced server chip in terms of process, surpassing similar products from Amazon and Huawei.

Click to expand...

After Huawei, Alibaba has reportedly become another Chinese tech company developing server CPUs in-house.
Alibaba's server chip based on the Arm architecture, which it has been developing since 2019, was tape out in the middle of the year and could be released in the near future, reported Monday, citing people familiar with the matter.
The chip has 128 cores and is built using a 5-nanometer process, making it the most advanced server chip in terms of process, surpassing similar products from Amazon and Huawei, according to the report.
In the server market, Intel currently holds nearly 90 percent of the X86 camp, while the Arm camp includes Huawei's Kunpeng chip and Amazon's AWS Graviton. In addition, players in the server market include IBM's POWER series processors.

Alibaba's chip will reportedly be unveiled at its annual developer conference, Yunqi, which this year will be held October 19-22 in Hangzhou, Zhejiang province.
The company had announced at that event in 2018 the formation of chip company T-Head (Pingtouge Semiconductor), the main body of Alibaba's semiconductor chip business, which has already launched several products, including artificial intelligence chip Hanguang 800.

Tyler said:

Do you suggest buying energy related etf as prices are going up?

Click to expand...

I see coal a bit more of a short term. IMO, energy is good for a short term, but LNG in particular will go up and continue to go up. But that's my opinion only.

I think Lithium is the new gold.