Wednesday, December 21st 2022
Blacklisting of YMTC by the U.S. Enables Samsung to Raise NAND Flash Prices by 10%
YMTC, the Chinese DRAM and NAND flash company that recently announced a 232-layer 3D NAND flash memory that threatened to disrupt entrenched players Samsung, Micron Technology, Kioxia, and SK Hynix, has been blacklisted by the U.S. Department of Commerce, forcing American consumer electronics and PC manufacturers to stop sourcing from the company. Capitalizing on just this, Samsung raised prices of its NAND flash memory chips by as much as 10%, according to a DigiTimes report.
YMTC peaked when Apple struck a NAND flash supply deal with the company in 2020, which would see its storage devices power pretty much every Apple product you can think of, however, under political pressure, Apple withdrew from this deal in 2022. The Department of Commerce contention has been to that YMTC has access to cutting-edge technology, and is backed by Chinese state-capacity, which can help it drive out competitors. All is not well between the U.S. and China geopolitically, either. Samsung's 10% increase in the first half of December 2022 concerns spot-pricing, which could mean its contract pricing (usually used by customers placing very large orders), could be different. It is conceivable that the exit of YMTC from the U.S. market could raise NAND flash product prices across the board.
Source:
DigiTimes
YMTC peaked when Apple struck a NAND flash supply deal with the company in 2020, which would see its storage devices power pretty much every Apple product you can think of, however, under political pressure, Apple withdrew from this deal in 2022. The Department of Commerce contention has been to that YMTC has access to cutting-edge technology, and is backed by Chinese state-capacity, which can help it drive out competitors. All is not well between the U.S. and China geopolitically, either. Samsung's 10% increase in the first half of December 2022 concerns spot-pricing, which could mean its contract pricing (usually used by customers placing very large orders), could be different. It is conceivable that the exit of YMTC from the U.S. market could raise NAND flash product prices across the board.
37 Comments on Blacklisting of YMTC by the U.S. Enables Samsung to Raise NAND Flash Prices by 10%
I'd say yes, it is a good decision.This is a domestic policy so unless you are indicating that the US can't control who it trades with, that's precisely what it's doing here.
And yeah, they are stealing IP where they can, and where they can't, they buy it and advance it further.
Take for instance 5G base stations, where China has beaten all the Western nations - or were they stealing that too? From the future, perhaps? Good thing USA declared these products a threat to national security, and Mike Pompeo went on a world tour threatening nations if they don't cancel their Huawei contracts. When it became apparent that Huawei overtook Apple and Samsung in phone sales, a simple phone became a threat to national security...
If China won't face a huge crysis soon (I know it has been prophesied for years now) this isolation will only mean there will be greater and greater gulf between old world Western products and a newly developed Chinese ones. And we'll cry "Stolen!" every time we'll see something new that we can't even begin to develop.
And more and more of world will look up to China.
Tesla become so big so i guess they also stole IP's because anything else is impossible
And the US complaining about stolen IP is a priceless irony, that's how they grew themselves
theworld.org/stories/2014-02-18/us-complains-other-nations-are-stealing-us-technology-america-has-history
So did Japan, SK, etc... all the "amazing" sucess stories
US and US companies did not had to accept that and they could go elsewhere or stayed in US, but no, greed took over and they accepted.
Chinese just profited from that. Now, that is evident, that it was bad idea for US, they are saying "look, they are stealing our IPs", when in reality it was part of the deal.
I would be furios, but not on Chinese (for them trying to make the best they can do for them) but on US govt and companies for not taking me, impact on our lives into account when accepting those conditions.
But screw the little guy, they wont work like slaves!
I just don't know what we would do without all of these forum experts telling us how global economics work lol.
So when you see "the US" do something stupid or harmful, nearly every single time, you need to understand that the people of the US were almost certainly completely against it and our government did it anyway. And funded it by stealing money from us and threatening violence to anyone who speaks out against it. The US is what enables the NAND cartel, they enabled the DRAM cartel, they enable price fixing and anti-competitive behaviors, and even in the very rare circumstances where our regulators actually fine a company, that fine is always, without exception, and *tiny* fraction of the profits those companies gained through underhanded tactics or outright breaking the law. "Fines," for large corporations in the US, are very literally just a cost of doing business. Fines exist to crush small companies before they can start competing with the chosen ones like Amazon or YouTube or pharmaceuticals.
How do you recognise which comment is right and which is wrong?
Long live the freedom of speech!
- Tesla is not owned or funded by the US government. It was founded by private parties like most US companies. YMTC was founded entirely by the Chinese government:
"Tsinghua Unigroup founded YMTC in July 2016, with a total investment of US$24 billion, including investments from the Hubei provincial government and the Chinese national "Big Fund" China Integrated Circuit Industry Investment Fund."
en.wikipedia.org/wiki/Yangtze_Memory_Technologies
- Tesla was founded in 2003 and produced it's first car in 2008. This means they've been around for almost 2 decades designing cars. YMTC was founded in 2016 so at best they have 6 years of experience.
- Ford sells more Vehicles in a single month than Tesla does in a year.
- Tesla made electric cars including features of which it's competitors didn't have. YMTC is releasing NAND with the exact same 232 layer count as Micron. Samsung has 236 layer NAND and SK Hynix has 238 layer. It's one thing for cars to have similar features, it's another for two supposedly different NAND products to have the exact same layer count.
Japan is a country, not a company. No idea where you are going with that one.
SK Hynix has been around since 1983 and has decades of experience in data storage solutions.
You comment does an excellent job proving my point, because even the other best case scenarios do not even come close to what YMTC is purporting to have developed.This is absolutely disinformation. Simply manufacturing something in China does not mean they have the right to use that IP as they see fit. That's not the way it works.This is simply not true. TPU is pretty lax with it's moderation policy, too much IMO. If your post gets deleted here it very likely deserved it.