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Alphane_Moon@lemmy.world

Tech war: China’s top chipmakers see shares plunge amid tariff uncertainty (www.scmp.com)

submitted 1 month ago by Alphane_Moon@lemmy.world to c/hardware@lemmy.world

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[–] Alphane_Moon@lemmy.world 7 points 1 month ago (1 children)

I am surprised to see SMIC and Hua Hong's shares decline. One would think semiconductors fabbed by these companies would be used almost exclusively for the Chinese market. In theory, tariffs/sanctions should have no impact on their business.

[–] fubarx@lemmy.world 6 points 1 month ago (1 children)

The problem isn't SMIC's products. It's who they sell to and the prospect of THEIR products getting impacted by tariffs. These are meat-and-potatoes components with low margins, not just the high-end processors.

If Walmart and Target stop ordering Elmo dancing dolls, singing greeting cards, and consumer blood pressure monitors, SMIC business could eventually take a hit.

June is also when most Chinese manufacturers start gearing up for mass-producing products for next Christmas. These things don't turn on a dime.

[–] Alphane_Moon@lemmy.world 1 points 1 month ago (1 children)

Are the microcontrollers used in the Elmo dolls; I think that's the key question.

[–] 3abas@lemm.ee 2 points 1 month ago

Better question: are they used for products intended for the US market?