Chinese chipmaker shares surge 470% • Hacker News Board

Re: Chinese chipmaker shares surge 470%

#191

Post by mortarion » Tue, Jul 28, 2026, 11:13 AM UTC

hn_submit wrote: post #175

You would think that the DRAM shortage would propel Europe to invest in DRAM fabs. But no, they think it's too risky because prices may fall in the next few years and building fabs costs a lot of money and is hard. They'd rather sell other people's stuff than make it themselves. Ergo, the Chinese will take this sector too without so much of a whimper from Europe. In a couple of years the Chinese will own 25% of the D…

It's not possible. High living costs, high energy costs (100x of China) and high regulatory costs all mean that if you were to build a modern fab, you'd need to sell your product for way more than the price offered by the competition in Asia and the USA, just to break even.

The interstate competition you see in the USA, where states compete against each other for companies to invest, is plain illegal in the EU.

Tax breaks? Illegal. Subsidized energy? Illegal. Subsidized land? Illegal. Permit exemptions? Illegal.

EU countries are not allowed to compete against each other by offering targeted state aid as incentive. This is to prevent wealthier EU nations from outcompeting poorer EU nations when it comes investments.

Basically the EU, in our infinite wisdom, are forever doomed to be disadvantaged.

Re: Chinese chipmaker shares surge 470%

#192

Post by sehansen » Tue, Jul 28, 2026, 11:59 AM UTC

bgnn wrote: post #74

jdiez17 wrote: post #58

Earlier quoted context omitted.

EU chip industry: best I can do is supply chips that are in 99% of industrial equipment and vehicles. Also supply the only machines in the world that enable leading edge lithography processes.

No comment on the second part, but the first part is wrong. EU doesn't have a moat in process technology anymore (since 2010s). They have a bunch of legacy fabs, like 350, 180 and 130 nm but Taiwan, US, and China (and others like Israel, or Singapore) have these too. EU is severely lacking behind chip design, production and packaging capabilities for industrial, automotive, and space kind of niche applications since…

I can't speak for the others, but ST has six fabs in Europe and only one in asia. ST's smallest process node is 18 nm and made in their fab in Crolles, France. In any case trying to compete at the cutting edge of process technology seems to be too expensive to be worth it.

Re: Chinese chipmaker shares surge 470%

#193

Post by smallmancontrov » Tue, Jul 28, 2026, 1:55 PM UTC

bawana wrote: post #79

pingou wrote: post #39

Earlier quoted context omitted.

Why does the US stock market keep having record years while the population doesn't seem to benefit, whereas the opposite is happening in China? Isn't that a failure of US capitalism?

The population in china is falling off a cliff....low birth rates, collapsing property prices (the main vehicle for personal investment), slowing ecconomy.

So they should have kept pumping property prices until the bubble popped at 3x the size? 5x? 10x?

If China's internal politics was like US internal politics, they would have done exactly that, and it would have been the wrong thing to do.

Re: Chinese chipmaker shares surge 470%

#194

Post by seanmcdirmid » Tue, Jul 28, 2026, 1:59 PM UTC

I wouldn’t take much stock in the SSE (Shanghai stock exchange) just yet. It’s still a very much insider traded market, and if you aren’t a whale or very good at following whales, you aren’t going to do very good.

Re: Chinese chipmaker shares surge 470%

#195

Post by fwip » Tue, Jul 28, 2026, 2:00 PM UTC

Mainan_Tagonist wrote: post #187

fwip wrote: post #133

Earlier quoted context omitted.

I don't believe either of those two companies have ever been profitable. (I'm sure Musk has some accounting tricks to make it look that way, though.)

Indeed, if these are loss making operations, who puts the capital for those rockets to get off the ground? and why are they putting their capital in this when instead they could have a "nice ETF bringing 10% yearly"?

I mean, if you want to count investors as revenue, that's not exactly standard economics.

Re: Chinese chipmaker shares surge 470%

#196

Post by seanmcdirmid » Tue, Jul 28, 2026, 2:03 PM UTC

thenthenthen wrote: post #128

samrus wrote: post #4

Earlier quoted context omitted.

If the chinese government feels its critical to china's success then it will be backed like alibaba and wechat and others were

Jackie Ma of Alibaba was basically exiled for some time because he got cocky (and too powerful/rich?).

Technically he wasn’t exiled, but “invited” to a communist party relaxation center for discussions.

Re: Chinese chipmaker shares surge 470%

#197

Post by Mainan_Tagonist » Tue, Jul 28, 2026, 6:53 PM UTC

fwip wrote: post #195

Mainan_Tagonist wrote: post #187

Earlier quoted context omitted.

Indeed, if these are loss making operations, who puts the capital for those rockets to get off the ground? and why are they putting their capital in this when instead they could have a "nice ETF bringing 10% yearly"?

I mean, if you want to count investors as revenue, that's not exactly standard economics.

no, that's not what i'm doing, just the opposite.

OP argued that investment is lead by short term thinking, yet i point out example of long term thinking and risk taking by investors.

Re: Chinese chipmaker shares surge 470%

#198

Post by fwip » Tue, Jul 28, 2026, 9:19 PM UTC

Mainan_Tagonist wrote: post #197

fwip wrote: post #195

Earlier quoted context omitted.

I mean, if you want to count investors as revenue, that's not exactly standard economics.

no, that's not what i'm doing, just the opposite. OP argued that investment is lead by short term thinking, yet i point out example of long term thinking and risk taking by investors.

Oh, I understand what you mean. Thank you for explaining.