Monday, September 28th 2020

US Government Could Blacklist Chinese Chipmaker SMIC

The Trump administration has reportedly been considering adding to Chinese chipmaker SMIC (Semiconductor Manufacturing International Corporation) to the trade blacklist of Chinese companies, restricting the company of doing any business with the United States and/or with any of its affiliates. The original report comes from Reuters and it states that the move came from Pentagon after considering whatever SMIC should be placed on a blacklist. It is so far unclear if other US agencies support the decision, however, it should be public in the near future. The company has received the news on Saturday and it was "in complete shock" about the decision. Shortly after the news broke, SMIC stock has fallen as much as 15% amid the possible blacklist. If SMIC would like to continue working with American suppliers, it would need to seek a difficult-to-obtain license from the government.

Update 28th September: The United States government hasofficially imposed sanctions on the Chinese chipmaker SMIC. The company is now under US sanctions and is placed on a trade blacklist.
Source: Reuters
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82 Comments on US Government Could Blacklist Chinese Chipmaker SMIC

#76
Flanker
TheLostSwedeEh? Do you even know how many manufacturing plants they have all over the world?
en.wikipedia.org/wiki/Foxconn#International_operations
They've been making iPhones in India for a few years already, together with Compal.
Foxconn, Wistron and Pegatron has just announced that they'll be investing more in India as well.
www.taiwannews.com.tw/en/news/4019455

Yes, as of today, they still make most things in China, but things are changing, for many reasons, least not the current US stance on China, but also because these companies understood how vulnerable they are focusing so much of their production on China.
You also need to catch up with the times, labour in China is no longer cheap and in fact, most staff in western and southern China gets paid more than the equivalent person doing the same job in Taiwan. On top of that, a lot of factory workers in Taiwan are from the Philippines or Indonesia these days, as that's where Taiwan gets low cost labour from to do the assembly jobs. They get paid as you mention, a lot less than the Taiwanese doing the same jobs.
The India assembly lines had terrible yields is what I have been hearing. The most skilled labor are mostly in China is what I mean. I used to work there and know about their sites.
Yeah cost of labor is increasing, but there is a class system in Taiwanese businesses in China. People get paid differently judged by their nationality even if doing the same jobs. A former colleague of mine got 3 times the pay by leaving Foxconn and getting practically the same job at OFilm.
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#77
TheLostSwede
News Editor
FlankerThe India assembly lines had terrible yields is what I have been hearing. The most skilled labor are mostly in China is what I mean. I used to work there and know about their sites.
Yeah cost of labor is increasing, but there is a class system in Taiwanese businesses in China. People get paid differently judged by their nationality even if doing the same jobs. A former colleague of mine got 3 times the pay by leaving Foxconn and getting practically the same job at OFilm.
Are you surprised? So called "expats" i.e. white people that get sent abroad by their companies also gets a lot higher salary than locals.
As such, Taiwanese workers that are sent to China gets paid more there, as they're working abroad in a kind of "expat" capacity.
I loathe the term though, especially as if you're not white, you're apparently a migrant worker and not an expat...

Foxconn pays shit regardless. Terry was complaining that fresh university graduate engineers in Taiwan was asking for too much money and they shouldn't get paid more than about NT$23,000 a month, or roughly US$800.
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#78
Flanker
TheLostSwedeAre you surprised? So called "expats" i.e. white people that get sent abroad by their companies also gets a lot higher salary than locals.
As such, Taiwanese workers that are sent to China gets paid more there, as they're working abroad in a kind of "expat" capacity.
I loathe the term though, especially as if you're not white, you're apparently a migrant worker and not an expat...

Foxconn pays shit regardless. Terry was complaining that fresh university graduate engineers in Taiwan was asking for too much money and they shouldn't get paid more than about NT$23,000 a month, or roughly US$800.
Yeah sorry for the random rant, I just need to get it out of my system that how much Foxconn disgusted me. It wasn't just the pay but the whole discriminatory atmosphere. When we leave the factories, our bags are searched. If anything remotely relate to the product manufactured is found we get into trouble. Well, for me it would probably just be a verbal warning since I'm Taiwanese. For Chinese staff? They get taken into a little dark room. No one ever told me what happens inside, I just assume it's unpleasant.
I entered Foxconn as a graduate with a masters degree and got paid 50K NTD a month, being in China gives me around another 20~30K. It rounded out to about 15~16K CNY at the time. Whereas the hiring a similar graduate from China pays 5000 CNY plus overtime pay which are handed out base on their Taiwanese manager's mood. My former manager sometimes refuse to pay them for overtime to cut department cost, lovely eh? They could easily get 10K+ from a local Chinese business. Not surprising how Foxconn in China was the place to go "when no one else wants you."

Back to the topic of this thread, I guess a lot of Chinese nationals won't be sad about foreign manufacturing companies leaving either...
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#79
kiriakost
Update 28th September: The United States government hasofficially imposed sanctions on the Chinese chipmaker SMIC. The company is now under US sanctions and is placed on a trade blacklist.

Great news for Europe, when we will become rich and able to spent for RTX 3080 this will be faster clocked than what Americans will get instead in their market. :roll:
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