back to article China's memory maker YMTC scores $7B to counter bans

Embattled memory vendor YMTC is getting a 49 billion yuan ($7 billion) infusion of funds from Chinese state-backed investors in the wake of sweeping trade restrictions against the company by the US and its allies. Bloomberg reports that approximately 12.9 billion yuan ($1.9 billion) of the money will come from China's …

  1. martinusher Silver badge

    Logical countermeasure

    This article is typical of the modern business article that mixes generic business planning -- whether its worth deploying capital to increase memory production capability -- and national strategic concerns. Nobody questions the enormous sums we (US) spend on weapons research and procurement, it all goes under the umbrella 'national security', so I'm pretty sure that the same kind of thinking applies in China. By elevating semiconductor supply chains to be national security related -- essentially weaponizing what was an outstanding example of global cooperation -- we have distorted supply chains to where the normal rules of business no longer apply. We've revoked the build/buy tradeoff rules, substituting for them a rather tenuous battle of capital investment, one I fear we might ultimately lose. The reason for this is obvious -- we in the US are trading on a legacy position as original suppliers of technology to cover for a rather anemic infrastructure and human capital position.whereas our 'adversary' in China has access to essentially unlimited capital and resources. We are dragging our 'allies' into this although this isn't warfare, its business, and at some point our 'allies' will find that its more advantageous to ignore us than obey us because we don't have anything fundamental to offer, just threats if they don't toe the line.

    I've watched this situation brew up for decades and its not getting any better. We've been fooling ourselves about it because of our relatively narrow focus on mobile technology and web based services. Much of this (IMHO) are time and resource wasting toys, a froth of apparent development built largely around imported devices (yes, we might have a stranglehold on the most advanced chips but we only need them because of the froth -- inefficiency -- that this focus generates). This is only the latest incarnation of a process I've witnessed over decades that gradually turned us from a technological powerhouse into very much a follower, continually withdrawing capital to cover for inherent shortcomings in our investment, relying on 'there's always more fish in the sea' -- until there isn't any more.

    1. Anonymous Coward
      Anonymous Coward

      Re: Logical countermeasure

      Absolutely agree, and there's another ticking time bomb which is getting closer to going off.

      If you have been foisting your currency on the entite world (or at least on the nations you coaxed or forced into being allies) for fossil fuel transactions, you have to go to town on those who discover it's more profitable to use alternatives. Ergo, any decline in fossil fuel dependency is in essence a direct threat to your currency and thus to your entire economy .. which is exactly what the whole global warming thing is doing, and Putin's actions rather accelerated that in Europe (your main economic competitor if they didn't have so many conflicting interests that they haven't quite gotten their coherency together).

      Now add a nation out there whose currency is also formally accepted by the World Bank as a reserve currency and who holds all the patents to alternative forms of cheaper and greener energy and you really have to do something because competing on a level playing field has never been your strong suit. The problem: they have bombs too, and despite a declining birthrate still have an excess of men, so the whole bullying with warfare won't work this time either as they can shoot back.

      Thus, the only remaining option is declaring their different idology as evil, their propensity to spy on you as much as you spy on others as evidence they cannot be trusted and presto, you can slow them down by embargoes. The problem: they still hold the cards to better and cheaper energy (ironically, the cards you discarded because they were not profitable enough at the time).

      So, that clock keeps on ticking.

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