News Chinese chip-related companies shutting down with record speed — 10,900, or around 30 per day, shut down in 2023

[Admin]

A record 10,900 Chinese semiconductor companies shut down in 2023.

Chinese chip-related companies shutting down with record speed — 10,900, or around 30 per day, shut down in 2023 : Read more

 

[atomicWAR]

I don't see these shut downs as a bad thing even if the embargo's are only partly to blame. Besides despite these shut downs China has been advancing faster than anyone could have guessed. If anything all of this has increased China's standing in home grown CPU/gpu performance.

This is not an ideal solution when the opposite was the intended effect. A closer look at these restrictions (present and future) needs to be taken and gone over with a fine toothed comb under the assumption they could again do the wrong thing so contingencies should be put in place in case that happens. Not sure what said contingencies should be but hey I can't do all the heavy lifting? Thoughts from others more versed in this?

 

[George³]

Imagine for a moment that it is not just a closure, but a consolidation of resources and human capital. Progress in garage companies in this industry can no longer be made as in the last century.

 

[ivan_vy]

I don't see these shut downs as a bad thing even if the embargo's are only partly to blame. Besides despite these shut downs China has been advancing faster than anyone could have guessed. If anything all of this has increased China's standing in home grown CPU/gpu performance.

This is not an ideal solution when the opposite was the intended effect. A closer look at these restrictions (present and future) needs to be taken and gone over with a fine toothed comb under the assumption they could again do the wrong thing so contingencies should be put in place in case that happens. Not sure what said contingencies should be but hey I can't do all the heavy lifting? Thoughts from others more versed in this?

thousands of companies wanting a piece of cake, obviously many will close down the road, happen with any trend like the cryptocoins with gpufarms and ASIC miners.
Despite the pandemic and sanctions, the trend is uprising.

China’s Share of Global Chip Sales Now Surpasses Taiwan's, Closing in on Europe's and Japan's

Global chip sales from Chinese companies are on the rise, largely due to increasing U.S.-China tensions and a whole-of-nation effort to advance China’s chip s

www.semiconductors.org

 

[TechLurker]

This isn't really new; there were reports last year that China's Big Fund attempt to start a massive local tech industry mostly failed, in the sense that a lot of money was just taken and stolen by a lot of no-name start-ups with vague ideas.

And that was on top of the COVID lockdowns also further screwing up their Big Fund project.

At this point, China's actually better served consolidating and funding only the actually viable companies while they try to recover the stolen funds from others.

 

[Mindstab Thrull]

Maybe it's because I was born and raised in North America, but I barely even remember they being more than half a dozen major CPU companies for personal computers - AMD, Intel, IBM, Texas Instruments, Motorola, and I think I'm missing one (was Cyrix by IBM?). I think more than that is asking for trouble. And if you extrapolate to other companies - RAM, storage, assembly vs design, etc - I would assume China could support maybe a thousand companies. I think too many are trying to get into the glamorous industries and not ones the industry really needs. (Note I have not researched this at all. But it's a common trap everywhere.)

 

[JarredWaltonGPU]

Let's also not forget that 2022 was when Ethereum mining ended, and China cracked down on cryptocurrency mining within its borders. I think it's a safe bet that there were at least hundreds of companies within China that were chip-related who closed up shop when mining became largely unprofitable.

 

[nookoool]

I wouldn't be surprise that many of these "companies" are just re-bageing/re-branding or trying to scam government subsidies.