News Chip price war unfolds as Chinese foundries cut tape-out prices — Taiwan and South Korean foundries pace new price pressures: Report

[Admin]

Chinese foundries yet have to build additional capacity in the coming years, but they are already cutting down tape-out prices.

Chip price war unfolds as Chinese foundries cut tape-out prices — Taiwan and South Korean foundries pace new price pressures: Report : Read more

 

[thestryker]

This is certainly the part of the market everyone should have their eyes on. It's why Intel was trying to acquire Tower and likely why China didn't approve it. Nobody is going to be building fabs for legacy nodes let alone new 200mm wafer fabs so it's up to the existing to keep on producing.

 

[Notton]

Okay, but which segments are they going after?
NAND/DRAM?
12~18nm used in device controllers, cars, etc?
CPUs?

 

[usertests]

Okay, but which segments are they going after?
NAND/DRAM?
12~18nm used in device controllers, cars, etc?
CPUs?

Seems like NAND/DRAM would be perfect. Doesn't need the leading nodes, and it's a commodity that everyone wants cheap and can be subject to price fixing.

https://www.tomshardware.com/news/c...-3d-qlc-nand-worlds-highest-recording-density

Xiaomi Reportedly Using China-Based YMTC's 232-Layer 3D NAND Memory

Ultra-fast storage for Xiaomi's flagship smartphone?

www.tomshardware.com

https://www.tomshardware.com/news/chinas-ymtc-xtacking-4.0

 

[dmitche31958]

Okay, but which segments are they going after?
NAND/DRAM?
12~18nm used in device controllers, cars, etc?
CPUs?

Any and all. If they can steal the business away from western companies then China wins. They may not make money and dump the products just to cover fixed overhead. I wouldn't be surprised to see the World Court being filled with cases in the coming year.

 

[Unolocogringo]

This was an expected move.
China has done this in all industries with its cheap labor and government subsidies.
This is why other countries have started to do the same with the US, Germany and EU implementing their CHIPs acts.
Otherwise China will price competition out of the market and then be the sole supplier.
Their standard operating procedure time and again.
This is a tricky "Political" subject, so I hope my post is received as common sence and not political theater.

 

[ThomasKinsley]

The price cuts will be good for consumers, at least in the short term. It would be even better if this reverses the predicted shortage of NAND chips that is supposedly set to cause price hikes.

 

[watzupken]

Matured nodes may not net as much profit as cutting edge ones, but they still contribute substantially due to numbers sold. Most electronics don’t use cutting edge nodes for their chips. So there’s always this concern of China dominating this segment. To be fair, nobody can blame China for “flooding” the market. There’s always willing demand and supply. For profit companies will always gravitate towards more affordable options. Nobody other than shareholders is “forcing” these companies to choose Chinese fabs. Ultimately, it benefits consumers as clearly illustrated in this case where leading fabs are forced to charge lower, drop their profit margins.