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Zombie fabs plague China's chipmaking ambitions, failures burning tens of billions of dollars (www.tomshardware.com)

submitted 1 day ago by [email protected] to c/[email protected]

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[–] avidamoeba 4 points 1 day ago* (last edited 1 day ago) (1 children)

Makes sense. They make startups, many startups fail for all the reasons highlighted. Some don't. That's the point of using competitive forces to create an industry when you don't know how to do something well. They did it with their EV industry, among others. I think they're finishing the competitive stage where many firms fail and entering the consolidation phase.

[–] [email protected] 3 points 1 day ago* (last edited 1 day ago) (1 children)

Yup, and the Chinese state has no shortage of money[1] for funding/loaning to industries it wants to prioritize. Central planning works.

[–] avidamoeba 2 points 1 day ago (1 children)

I'd argue no state has any shortage of money, not only PRC. Financial capital in fiat systems is factually unlimited. The ability to direct it in areas of public interest instead of private financial capital's owners' interest is what the PRC has over many others. The real limits are the real resources that are needed for that industry and a major one is highlighted in the article - the lack of expertise. But this exercise, along with investments in higher education and pushing boatloads of people through it are building that real resource.

[–] [email protected] 1 points 1 day ago* (last edited 1 day ago)

Yup. Previously.