What happens if Samsung and SK Hynix simply stop selling to US at all? Micron is in US but are the rest still in the US jurisdiction?
They are selling the hottest commodity of the day. It’s made outside of the US using non-American tooling.
They are selling the hottest commodity of the day. It’s made outside of the US using non-American tooling.
The whole point of the collusion is to ensure everyone is producing the same volumes and keeping prices high. The company that expands is the company that "wins" because memory is a volume game and it's all about hanging on the longest during the glut. So once one company expands, the rest have a choice of expanding or planning their exit.
If Samsung and SK lose access to the US market, they'd be fucked long term. Micron would kill them selling at higher margins and higher volumes in the USDM, while the rest are stuck competing for the international scraps - markets Micron is also allowed to compete in, if they wanted to.
> South Korea announces $520bn chip plant project with Samsung, SK Hynix
https://asia.nikkei.com/business/tech/semiconductors/south-k...
No? Cost to produce won't be cheaper just because you have 5 fabs instead of 4. Economies of scale at some level just flatten out so company that chooses to not expand will just enjoy the same level of profit instead of increase
Depends if US can demand ASML which uses plenty of US tech inside. In reality even the DRAM and NAND supply chain has plenty of US technologies.
And you say Micron are US but they have lots of Fabs in Japan as well since they acquired Elpida.
The thing about the US losing its grip on the world and the collapse of the global world order means that the words on the paper don't mean much. Embargoes on Russia didn't mean much so Europeans are physically taking over their ships and Ukrainians are physically sinking the rest of their ships. In Iran nothing other than physically sinking ships and blowing up places meant anything.
Europeans can ship EUV machines because they are physically building them for people who will use these to physically build the most valuable products currently there is. US wasn't able to enforce its will to Iran, what if Koreans, Europeans and the Chinese decide that its not into their interest to act according to US courts?
There is nothing that stops US from building their own Memory Fabs, or asking / funding Micron building more US Fabs. It will cost a more, but the complexity is certainly no where near replicating TSMC.
Most of their revenue comes from America. Not all countries have the same profit margin per user.
So, even if Apple can eventually be fine is it going to be $4T fine?
Global economy means global price competition.
Another interesting effect is that industrial countries typically have MUCH lower average salaries.
This is as biased an Anti-US take as any. Will not grace the rest of the claims with a response.
lol he is not. at no point was he a syrian. his mom was from ohio or something.
Note Steve’s biological mom and biological dad, the Syrian, kept their second child, a girl, and Steve even met her later on in life.
They would lose access to their largest market, I'm sure shareholders would havesomething to say about that ?
In theory yeah, but not at the levels that the US companies are buying.. Last I heard OpenAI is sitting on 50% of the world useless wafers on their own for some reason, and Microsoft cant find a datacenter fast enough to plug their stock in.
I'm a customer, looking for a simple 32GB ddr5 6000 ram, I'm now competing with Microsoft because there isn't enough supply? I'm not sure about that.
Corporations avoid picking fights with large nations where lots of revenue comes from for very obvious reasons.
1) This is not good for Korean/Europen sellers, because it negatively affects sales volume, and is unlikely to be compensated by margins, because a good chunk of those will go towards circumvention instead of the original seller.
2) Some more money will go towards replacing those sellers completely. This is extra not good from the sellers perspective.
It’s been done with processors, modems, SSDs and many other specialized chips. The design and engineering part can already be done at several companies, they just elect not to do anything on the fab side. But they will, if they have to in the long run.
It takes two to four years and Five to twenty billion dollars. Some of the bigger companies, if pushed, particularly, if the alternative is getting chips from China, will do something on the fab side if they absolutely have to. They probably won’t live with the current conditions forever.
There was a company that had three companies say no over about 10 years, eventually, they made a decision to build their own processor known as the M-series…
The problem is... the market consolidated into this oligopoly for a reason. Memory and storage have gone through so, so many pork cycles over the decades.
To make it worse: even if you had the money, ASML is booked out fully for years. You won't get the lithography gear.