News China's chip sector is growing but may be nearing overcapacity — SMIC revenues rise as profits fall

[Admin]

China's semiconductor imports and exports have both grown in the first half of 2024, but growth falls behind competing nations and points to long-term problems.

China's chip sector is growing but may be nearing overcapacity — SMIC revenues rise as profits fall : Read more

 

[thisisaname]

A chip oversupply, I'll believe that when it happens.

 

[Kondamin]

They could introduce consumer ssds larger than 8TB and sell out all produced nand in about an hour

 

[Pierce2623]

They could introduce consumer ssds larger than 8TB and sell out all produced nand in about an hour

SMIC doesn’t do nand. That YMTC. Besides, this is only talking about legacy chips and nand old enough to be “legacy” wouldn’t be dense enough for large SSDs above 8TB.

 

[NinoPino]

A chip oversupply, I'll believe that when it happens.

Agree with you.
It is a nonsense to insinuate that might be an oversupply in the future, oversupply exist or not exist.
The article however talk of overcapacity, not oversupply, and to me this is positive for China and may lead to future lower prices for legacy chips.

 

[Kondamin]

SMIC doesn’t do nand. That YMTC. Besides, this is only talking about legacy chips and nand old enough to be “legacy” wouldn’t be dense enough for large SSDs above 8TB.

Nand is 16nm the only thing new is the amount they have been stacking the layers.
There is no problem just putting more legacy dies on a pcb

 

[wr3zzz]

First, it's oversupply and not overcapacity. Overcapacity in this context is a political slogan because US cannot pin dumping on China. Dumping is an unacceptable trade practice but oversupply is just natural business cycle. White House hijacked and twisted the term overcapacity to paint China evil because China is clearly not dumping. Most reputable news outlets are very careful when using the word overcapacity in this context to avoid being seen as pushing a propaganda, at least for the time being. Overcapacity used to be a good thing because when a company is running at overcapacity it means demand is so strong the company is producing beyond its designed capacity. A venue is overcapacity when there are too many patrons. It's very 1984-ish that overcapacity is being used as an accusation by state media and the irony is that it's US doing it.

Second, there is no "near" oversupply. You are either in oversupply or not based on supply-demand balance. There is "soon to be oversupply" or "projected to be in oversupply". If revenue is growing but profit is falling then it's more about costs and competition but not necessarily not enough demand.

Are there no journalists left on this site?

 

[Pierce2623]

Nand is 16nm the only thing new is the amount they have been stacking the layers.
There is no problem just putting more legacy dies on a pcb

Yes and 16nm in nand and DRAM is still considered a leading edge node. Legacy is like 60nm and older.