00:00 Speaker A
Let’s begin with this report, Matt. I imply, definitely the journal made quite a lot of headlines with it. They’re saying, pay attention, the US may certainly revoke or cancel these waivers that enable world chip makers to ship American tech to China. You recognize this sector, Matt, effectively, you’ve got lined the trade for a very long time. You noticed that headline and that report. What what did you make of it?
00:33 Matt
Um, effectively, I instantly thought concerning the the Korean reminiscence makers, proper? In within the sense that each Samsung and Hynix produce quite a lot of product, um, in China. It’s kind of unclear to me precisely what quantity of that product is perhaps affected. Is all of it of it? Is it some some portion of it? However I I imply that is that is what struck me immediately.
01:21 Speaker A
After we discuss this American tech that is going to China, what sort of American tech are we’re we speaking about precisely, Matt?
01:39 Matt
Yeah, so I am considering it is the semiconductor capital tools. Uh so that you you are speaking about uh fly supplies, you you are speaking about lamb, um, and I am assuming it is utilized in in some type of course of tech. So I I am undecided if there’s there is a level in within the sense that it is solely the extra superior know-how that that that is being restricted or if there is no cutoff level, um, however not less than that might be my assumption. However once more, there’s there’s not a there’s not a ton of readability round precisely what is perhaps restricted.
02:58 Speaker A
Would you guess, Matt, if we discuss concerning the type of chips that is perhaps impacted right here, would you assume it will be, you understand, the most recent and biggest chips? Would it not be extra reminiscence, extra logic? The type of chips that might go into your automobile, your shopper electronics? What do you assume?
03:25 Matt
Yeah, so in the event you’re at these Taiwanese corporations, uh so that you’re speaking UMC, uh you are speaking Taiwan Semi. The the quantity of producing they’ve in China is is minimal, proper? You are speaking for each these distributors, low single digits. Um these are uh they’re extra mature applied sciences. So these can be the sorts of chips that might go into your automobile. Um however once more, they’ve they’ve product elsewhere. Um I have a tendency to consider them utilizing these Chinese language fabs to make product for China. So it simply would not actually have a lot impression on us, would not have a lot impression on their high or backside line. On the reminiscence facet although, you you are speaking a lot bigger type of parts of of Hynix and and Samsung output. After which sure merchandise are are considerably distinctive. So Intel’s previous reminiscence fab which is in Dalian, China, it makes a excessive capability NAND chip that actually is not similar to what anybody else makes. Uh Hynix has been capable of dominate the the marketplace for excessive capability SSDs. Um and so if that is affected, it it it has some actual ramifications uh for the market since most of that product results in the US.
