China's memory chip investment threatens Korea

[cirr]

Posted : 2016-07-20 16:29

Updated : 2016-07-20 16:29

China's memory chip investment threatens Korea

By Choi Sung-jin

Chinese businesses are stepping up efforts to localize memory chip production through massive investment, industry sources said Tuesday.

According to Chinese media, Fujian Electronics and Information Group broke ground last Saturday on a memory chip plant in a semiconductor industrial complex in Jinjiang, Fujian Province, in a joint venture with the local governments of Quanzhou and Jinjiang.

In the first phase, the company plans to invest 37 billion yuan ($5.53 billion) to build and operate the plant with a capacity of 60,000 sheets of 12-inch wafers a month by 2018. The group, to be subsidized 3 billion yuan from the Chinese central government, plans to double the plant's capacity within five years.

The Xinhua News Agency reported that the group's investment plan followed similar announcements by Tsinghua Unigroup in Beijing and XMC in Wuhan to invest about 80 billion yuan and 160 billion yuan, respectively, for localizing memory chip production. Put together, the three companies will invest 270 billion yuan.

The groundbreaking for the chip plant's construction marks the first project launched by the Fujian Province Semiconductor Industry Investment Fund, established jointly in June by the three municipal governments in Fujian, Chenzhou and Jinjiang.

The Taiwanese and Japanese are about to join China's memory chip localization drive. Sino King Technology, started by Yukio Sakamoto, former CEO of Elpida Memory, which was Japan's largest memory chip maker, has decided to set up a chip plant with the municipal administration of Hefei, Anhui Province.

Sino King's plant, which will start with a capacity of 100,000 sheets of 12-inch wafers a month, will reportedly invite 20 to 30 Taiwanese experts to design semiconductors and operate the plant, sources said.

Xinhua said China has sustained the biggest trade deficit in global semiconductor markets, importing $200 billion of computer chips a year. And while memory chips have been important links in China's semiconductor industrial chain, the market has long been dominated by foreign businesses, it said.

In China's DRAM chip market in the first quarter, three foreign companies -- Samsung Electronics and SK Hynix of Korea and Micron of the United States -- accounted for 93 percent of supply. In the NAND flash sector, too, six foreign makers, including the three and Japan's Toshiba, dominated the market, the state news agency said.

"The semiconductor industry is a basic, strategic and initiating sector for economic growth and information security of the state," Xinhua quoted a ranking Chinese official who attended the groundbreaking ceremony.

The current lull in foreign makers' investment provides good opportunities for Chinese companies to catch up with advanced competitors abroad, a Taiwanese industry expert was quoted as saying. "In the next five or 10 years, Chinese companies will have opportunities to compete with foreign giants."

Industry watchers here said it would be noteworthy whether Korean companies follow the example of domestic smartphone and heavy-duty equipment makers. Samsung Electronics, the world's largest smartphone maker and once the market leader in China, was overtaken by Huawei in 2014 and is not even among the top-five providers. Doosan Infracore, which had been the largest supplier of excavators in China, lost the top spot to China's Sanyi Group in 2010, and was pushed below No. 5.

Along with the rapid expansion of China's computer chip industry, the world's second-largest economy is emerging as a major market for semiconductor equipment. According to Japan's Nihon Keizai Shimbun, China's semiconductor equipment market is expected to grow 12.9 percent to $7.2 billion next year, recording a 1.5-times expansion in just two years to be the world's third-largest market.

Taiwan will be the largest semiconductor equipment market with $10 billion in 2017, up 5.9 percent from this year, and that of Korea is estimated to increase 29.5 percent to $7.9 billion.

Fujian Electronics, Tsinghua Unigroup and other Chinese makers localizing memory chip production want to move beyond the simple operation of plants to establishing a semiconductor industrial chain complete with independent intellectual property rights, the experts said. China's emergence in this industry will provide opportunities and challenges for Korea's semiconductor equipment makers, they said.

http://www.koreatimes.co.kr/www/news/biz/2016/07/123_209882.html

 

[Mangus Ortus Novem]

SK and Japan should join hands with China to create the most innovatie and efficient industrial block in the world. After all China is the fountainhead of their culture and language.

This divide in NE Asia has caused too much damage and has not benefited Asia at all.

It time that they join the Community of Prosperity and work closely with China.

They need China to be on their side for their own economic growth.

 

[Beidou2020]

SK and Japan should join hands with China to create the most innovatie and efficient industrial block in the world. After all China is the fountainhead of their culture and language.

This divide in NE Asia has caused too much damage and has not benefited Asia at all.

It time that they join the Community of Prosperity and work closely with China.

They need China to be on their side for their own economic growth.

Japanese and Koreans are jealous of China.

Just watch China replace Korean technology dependence in LCD, OLED, memory chip, high-end ships, etc over the next 2-3 years.

 

[Mangus Ortus Novem]

Japanese and Koreans are jealous of China.

Just watch China replace Korean technology dependence in LCD, OLED, memory chip, high-end ships, etc over the next 2-3 years.

There is no doubt that China will replace their 'technological' advantage.

China has been denied any kiind of meaningful technology be it civilian or military for last two centuries.. But China has turned this crisis into opportunities for the Chinese people.

The point is if SK and JP want to have a prosper future they must join hands with China and stop trying to hinder the Dragon. It is useless and will only be harmful to their economies. NE Asian economic union will benefit them greatly. If only their politician see it. Their people respect and love China.

One just wishes harmony under the heavens!

 

[chauism]

Japanese and Koreans are jealous of China.

Just watch China replace Korean technology dependence in LCD, OLED, memory chip, high-end ships, etc over the next 2-3 years.

I highly doubt that, at least not within the next 2~3 years. It is good to be confident, but be careful not to be too over confident. Everything takes time, and there are steps that one can never skip in their development stage.

 

[GS Zhou]

Japanese and Koreans are jealous of China.

Just watch China replace Korean technology dependence in LCD, OLED, memory chip, high-end ships, etc over the next 2-3 years.

let's be realistic. 2~3 year is obviously far too short for the target. For Korea's dominance in semiconductor industry, we need much more time to break up its dominant position.

 

[TaiShang]

SK and Japan should join hands with China to create the most innovatie and efficient industrial block in the world. After all China is the fountainhead of their culture and language.

This divide in NE Asia has caused too much damage and has not benefited Asia at all.

It time that they join the Community of Prosperity and work closely with China.

They need China to be on their side for their own economic growth.

Japanese and Koreans are jealous of China.

Just watch China replace Korean technology dependence in LCD, OLED, memory chip, high-end ships, etc over the next 2-3 years.

Let's consider it competition, which is not a bad thing. The fact is that, aside from the geopolitical competition, China has been blessed with having a, partly, advanced neighborhood that shares common cultural traits and values.

Perhaps they offer tough competition, but, once the political differences are settled, there is a good chance for a Northeast Asian super region that would leave the EU or NAFTA in dust.

 

[Mangus Ortus Novem]

Let's consider it competition, which is not a bad thing. The fact is that, aside from the geopolitical competition, China has been blessed with having a, partly, advanced neighborhood that shares common cultural traits and values.

Perhaps they offer tough competition, but, once the political differences are settled, there is a good chance for a Northeast Asian super region that would leave the EU in dust.

This has to be our strategic objective. With NE Asian integeration global economic balance can finally return to Asia.

With this integeration a true Asian century can begin. Otherwise, all of asia will remain a sweat shop.
We need all of Asia to progress and develop and join the Community of Prosperity through OBOR.

This the keep to having peace under the heaven. The Dragon is wise and begnign.

We must not be distracted by trouble makers and use wisdom to intergrate all of Asia and Eurasia with the kingdom under heaven. World needs the rebirth of Chinese Civilisation.

 

[TaiShang]

This has to be our strategic objective. With NE Asian integeration global economic balance can finally return to Asia.

With this integeration a true Asian century can begin. Otherwise, all of asia will remain a sweat shop.
We need all of Asia to progress and develop and join the Community of Prosperity through OBOR.

This the keep to having peace under the heaven. The Dragon is wise and begnign.

We must not be distracted by trouble makers and use wisdom to intergrate all of Asia and Eurasia with the kingdom under heaven. World needs the rebirth of Chinese Civilisation.

Very wise, my friend. And you use the very significant concept, that is, community, which should be the ultimate objective to create, as you indicate, a larger Eurasian area of prosperity and security. This, in my opinion, is incomplete without other Asian heavyweights, Japan and Korea, participating.

Korea is more cooperative, as their participation in the AIIB shows, but Japan remains to be more reluctant.

 

[Mangus Ortus Novem]

Very wise, my friend. And you use the very significant concept, that is, community, which should be the ultimate objective to create, as you indicate, a larger Eurasian area of prosperity and security. This, in my opinion, is incomplete without other Asian heavyweights, Japan and Korea, participating.

Korea is more cooperative, as their participation in the AIIB shows, but Japan remains to be more reluctant.

Tai Shang, use the Tao mind and percieve. SK and JP are not free countries. Are they?

Their culture, language and belief system came from China... if anything, these two are closet to Chinese culture and thinking. We must work wisely and deligencly to reintegrate them back to the Chinese world.

Their future depends on China. But they are used as trouble makers. Well their politicians. Not the people.
We must engage the people.

With the rebirth of the Chinese Civilisation at hand, the goal has to be Harmony under the Heavens.
A free and prosper Asia is in the Chinese Strategic Interest.

But first China must build her comprehensive national strength in every aspect of national life.

China has never been an expansionist state and never shall be. It is not in Chinese DNA. OBOR is the only way for peace and development.

 

[Jlaw]

SK and Japan should join hands with China to create the most innovatie and efficient industrial block in the world. After all China is the fountainhead of their culture and language.

This divide in NE Asia has caused too much damage and has not benefited Asia at all.

It time that they join the Community of Prosperity and work closely with China.

They need China to be on their side for their own economic growth.

LOL. Have you been meditating Taosim in a cave recently? You do know that Korean are not too fond and are jealous of Chinese beating them. When China made the mistake of joint venture with them in shipbuilding they almost fucked up the Dalian port and delayed years for the building of China's military ships.

I rather see China go alone or with Taiwan to oust the Japanese and Koreans for dominance.

There is no doubt that China will replace their 'technological' advantage.

China has been denied any kiind of meaningful technology be it civilian or military for last two centuries.. But China has turned this crisis into opportunities for the Chinese people.

The point is if SK and JP want to have a prosper future they must join hands with China and stop trying to hinder the Dragon. It is useless and will only be harmful to their economies. NE Asian economic union will benefit them greatly. If only their politician see it. Their people respect and love China.

One just wishes harmony under the heavens!

Again, if Koreans and japanese were sensible they would not be fighting with China on the international stage or be a stooge for uncle Sam.

Let's consider it competition, which is not a bad thing. The fact is that, aside from the geopolitical competition, China has been blessed with having a, partly, advanced neighborhood that shares common cultural traits and values.

Perhaps they offer tough competition, but, once the political differences are settled, there is a good chance for a Northeast Asian super region that would leave the EU or NAFTA in dust.

But seriously bro, are you still dreaming about the former Nihonjin's pipe dream about East Asian Sphere of Cooperation? You know that's just BS. As far as I know in East Asian history there can only be true peace in the region when China's military and economy trump Korea and Japan.

Tai Shang, use the Tao mind and percieve. SK and JP are not free countries. Are they?

Their culture, language and belief system came from China... if anything, these two are closet to Chinese culture and thinking. We must work wisely and deligencly to reintegrate them back to the Chinese world.

.

Bro, get with the new era. Yes, their culture, belief etc came from China. Did that stop them from ever stopping to take over China throughout the centuries? Did that stop them from murdering millions of Chinese?

You must be more realistic because in my understanding, people who are too involved with a religion tend to have blurred vision when it comes to dealing with reality.

 

[CAPRICORN-88]

Korea's Samsung taking a stake in China's BYD in fact is a significant news as it signal the future trend between China and South Korea economies which is getting closer by the year.

Competition between rival companies are in fact healthy and consumers benefit from it.

East Asian Union may become a reality one of these days and in fact keep the region safe and peaceful away from US influence. But you are right, it would be easy because USA will sabotage it. But looks like South Korea and China may lead the way first.

Japan car makers did not enter into China market because they were make to believe Chinese people under the CCP can never afford a car. But look at what is happening today? It is not only the biggest automart in the world but it also leading the way in alternative energy vehicle. Products like Huawei, Lenovo, Xiaomi, etc etc were unthinkable and was thought to be impossible.

So you see NOTHING is IMPOSSIBLE! It is not a dream but a future blueprint.

 

[A.P. Richelieu]

Posted : 2016-07-20 16:29

Updated : 2016-07-20 16:29

China's memory chip investment threatens Korea

By Choi Sung-jin

Chinese businesses are stepping up efforts to localize memory chip production through massive investment, industry sources said Tuesday.

According to Chinese media, Fujian Electronics and Information Group broke ground last Saturday on a memory chip plant in a semiconductor industrial complex in Jinjiang, Fujian Province, in a joint venture with the local governments of Quanzhou and Jinjiang.

In the first phase, the company plans to invest 37 billion yuan ($5.53 billion) to build and operate the plant with a capacity of 60,000 sheets of 12-inch wafers a month by 2018. The group, to be subsidized 3 billion yuan from the Chinese central government, plans to double the plant's capacity within five years.

The Xinhua News Agency reported that the group's investment plan followed similar announcements by Tsinghua Unigroup in Beijing and XMC in Wuhan to invest about 80 billion yuan and 160 billion yuan, respectively, for localizing memory chip production. Put together, the three companies will invest 270 billion yuan.

The groundbreaking for the chip plant's construction marks the first project launched by the Fujian Province Semiconductor Industry Investment Fund, established jointly in June by the three municipal governments in Fujian, Chenzhou and Jinjiang.

The Taiwanese and Japanese are about to join China's memory chip localization drive. Sino King Technology, started by Yukio Sakamoto, former CEO of Elpida Memory, which was Japan's largest memory chip maker, has decided to set up a chip plant with the municipal administration of Hefei, Anhui Province.

Sino King's plant, which will start with a capacity of 100,000 sheets of 12-inch wafers a month, will reportedly invite 20 to 30 Taiwanese experts to design semiconductors and operate the plant, sources said.

Xinhua said China has sustained the biggest trade deficit in global semiconductor markets, importing $200 billion of computer chips a year. And while memory chips have been important links in China's semiconductor industrial chain, the market has long been dominated by foreign businesses, it said.

In China's DRAM chip market in the first quarter, three foreign companies -- Samsung Electronics and SK Hynix of Korea and Micron of the United States -- accounted for 93 percent of supply. In the NAND flash sector, too, six foreign makers, including the three and Japan's Toshiba, dominated the market, the state news agency said.

"The semiconductor industry is a basic, strategic and initiating sector for economic growth and information security of the state," Xinhua quoted a ranking Chinese official who attended the groundbreaking ceremony.

The current lull in foreign makers' investment provides good opportunities for Chinese companies to catch up with advanced competitors abroad, a Taiwanese industry expert was quoted as saying. "In the next five or 10 years, Chinese companies will have opportunities to compete with foreign giants."

Industry watchers here said it would be noteworthy whether Korean companies follow the example of domestic smartphone and heavy-duty equipment makers. Samsung Electronics, the world's largest smartphone maker and once the market leader in China, was overtaken by Huawei in 2014 and is not even among the top-five providers. Doosan Infracore, which had been the largest supplier of excavators in China, lost the top spot to China's Sanyi Group in 2010, and was pushed below No. 5.

Along with the rapid expansion of China's computer chip industry, the world's second-largest economy is emerging as a major market for semiconductor equipment. According to Japan's Nihon Keizai Shimbun, China's semiconductor equipment market is expected to grow 12.9 percent to $7.2 billion next year, recording a 1.5-times expansion in just two years to be the world's third-largest market.

Taiwan will be the largest semiconductor equipment market with $10 billion in 2017, up 5.9 percent from this year, and that of Korea is estimated to increase 29.5 percent to $7.9 billion.

Fujian Electronics, Tsinghua Unigroup and other Chinese makers localizing memory chip production want to move beyond the simple operation of plants to establishing a semiconductor industrial chain complete with independent intellectual property rights, the experts said. China's emergence in this industry will provide opportunities and challenges for Korea's semiconductor equipment makers, they said.

http://www.koreatimes.co.kr/www/news/biz/2016/07/123_209882.html

Article does not mention some critical things:

• Where will the semiconductor process come from.
• Who will design the memories?
• How get around blocking patents?

 

[Mangus Ortus Novem]

LOL. Have you been meditating Taosim in a cave recently? You do know that Korean are not too fond and are jealous of Chinese beating them. When China made the mistake of joint venture with them in shipbuilding they almost fucked up the Dalian port and delayed years for the building of China's military ships.

I rather see China go alone or with Taiwan to oust the Japanese and Koreans for dominance.



Again, if Koreans and japanese were sensible they would not be fighting with China on the international stage or be a stooge for uncle Sam.





But seriously bro, are you still dreaming about the former Nihonjin's pipe dream about East Asian Sphere of Cooperation? You know that's just BS. As far as I know in East Asian history there can only be true peace in the region when China's military and economy trump Korea and Japan.



Bro, get with the new era. Yes, their culture, belief etc came from China. Did that stop them from ever stopping to take over China throughout the centuries? Did that stop them from murdering millions of Chinese?

You must be more realistic because in my understanding, people who are too involved with a religion tend to have blurred vision when it comes to dealing with reality.

Religion is a personal affair. As long as it does not disables progress and closes the mind, it is personal choice.

The Chinese model of development is the right way forward.

I understand that SK and JP have not acted as friends.... but we need to turn opponents into friends... again it is in their best interests to be kind to the Dragon.

Tao and Dragon are one. The Toa is on side of China once again.

A new cycle of time has started and momentum is with the Chinese Civilisation once again.

I know I sound foolish, because I am becoming old. But Toa is Timeless.

I do not know much about technology. Learn from you young people.

I just want to see the Chinese Civilisation blossom in my life time!

Be with the Tao and let the Tao be with you.

 

[Jlaw]

Religion is a personal affair. As long as it does not disables progress and closes the mind, it is personal choice.

The Chinese model of development is the right way forward.

I understand that SK and JP have not acted as friends.... but we need to turn opponents into friends... again it is in their best interests to be kind to the Dragon.

Tao and Dragon are one. The Toa is on side of China once again.

A new cycle of time has started and momentum is with the Chinese Civilisation once again.

I know I sound foolish, because I am becoming old. But Toa is Timeless.

I do not know much about technology. Learn from you young people.

I just want to see the Chinese Civilisation blossom in my life time!

Be with the Tao and let the Tao be with you.

In the international stage, countries become your "friend" if you are stronger than them in economy and military. They become your enemy when you are weak.

In today's world, being dominant in technology in all fields is a must if you want to be perceive as number one. All the advance weapons and advance medical equipment require a great deal of technology.

edit: money cannot buy you the latest tech, it's up to a country to develop it.