China and 28nm Fabs? Why?

[Arthur Hanson]

U.S. Sanctions Catalyst For China’s New Semiconductor Fab Expansion

Current Chinese fab expansions through 2025 will add just 6% to the overall global semiconductor capacity with a $68 billion fab spend. Click to read more.

seekingalpha.com

Any thoughts of why China is building so many mature technology fabs and what they hope to accomplish? How many mature technology fabs are using Chinese equipment world wide? Any thoughts on Chinese strategies sought and welcome.

 

[hist78]

U.S. Sanctions Catalyst For China’s New Semiconductor Fab Expansion

Current Chinese fab expansions through 2025 will add just 6% to the overall global semiconductor capacity with a $68 billion fab spend. Click to read more.

seekingalpha.com

Any thoughts of why China is building so many mature technology fabs and what they hope to accomplish? How many mature technology fabs are using Chinese equipment world wide? Any thoughts on Chinese strategies sought and welcome.

One obvious reason is to make a lot of money for those insiders without considering if their products are competitive.

 

[jai1611]

It may also be to get to self reliance on chip consumption. China has a large push into EVs and is already an industrial, consumer electronics giant. All of these use trailing edge chips. Given worries around tightening WFE restrictions and long term ambitions in these industries, accelerating domestic chip capacity would make sense. This capacity would be cost uncompetitive but insulated from the rest of the world.