Trade War: Qualcomm cut 1500 jobs in the US and more globally, meanwhile China chip maker get boost

[52051]

China's chip market acount for 50+% of entire world, with President Dotard's mission codename bone spurs, US chip maker like qualcomm will have to give up that market.

With current financial situation and debt level of most US tech companies, I would not be surprised in the next few years many big US tech companies will fill for bankruptcy.

U.S. semiconductor and telecom giant Qualcomm is cutting more than 1,500 jobs in California and an additional, undisclosed, amount from locations around the globe.

“As part of the cost reduction plan announced in January, Qualcomm is conducting a reduction of our full-time and temporary workforce,” the company said in a statement. “We first evaluated non-headcount expense reductions, but we concluded that a workforce reduction is needed to support long-term growth and success, which will ultimately benefit all our stakeholders.”

The company, which retained more than 33,000 employees as of late 2017, said the job cuts will help slash expenses by about $1 billion.

The San Diego-based company released a detailed plan to create near-term value and win shareholder support in January, at a time when it was the target of a hostile takeover bid from Singapore-based rival Broadcom. The Trump administration has since blocked the proposed acquisition over national security concerns, leading Broadcom to abandon its efforts.

Meanwhile, Qualcomm’s attempts to acquire NXP Semiconductors is running into regulatory hurdles in China, due to antitrust concerns. The company pushed back the deadline for completing the deal on Thursday to July 25, from April 25.

Shares of the beleaguered telecom giant, which were trading slightly lower as of midday on Friday, are down more than 18% so far this year.

https://www.foxbusiness.com/markets/qualcomm-to-cut-more-than-1500-jobs

Meanwhile, investors are very optimisic about the outlook of China's domestic chip makers, sector leaders like Guorui Tech grow 80%, Ziguang Chip grow near 100% since Feb amid the cloud of trade war, significantly outperform the market index.

 

[52051]

nearly 60% of Qualcomm's revenue come from China, with China's plan on full domestized chip set production, qualcomm's future is bleak, I would not be surprised that qualcomm will be the first victim of trade war, instead of ZTE which get full back from China.

 

[Brainsucker]

Qualcomm should open a new company (not with the name of Qualcomm) in Taiwan, Korea or Japan, export their chips there, and from that company goes to ZTE. Everyone happy.

Just like what China do with their Steel. They export the steel to Vietnam and Korea, and then both Korea and Vietnam sell the steel to USA. Everyone happy, everyone get profit.

 

[52051]

Qualcomm should open a new company (not with the name of Qualcomm) in Taiwan, Korea or Japan, export their chips there, and from that company goes to ZTE. Everyone happy.

Just like what China do with their Steel. They export the steel to Vietnam and Korea, and then both Korea and Vietnam sell the steel to USA. Everyone happy, everyone get profit.

When China decide to ban qualcomm, she will make sure nobody can take advantage of this ban, well besides China's state-owned investment funds, which may take the inside information to short qualcomm stocks to make an even better deal.

 

[Bussard Ramjet]

China's chip market acount for 50+% of entire world, with President Dotard's mission codename bone spurs, US chip maker like qualcomm will have to give up that market.

With current financial situation and debt level of most US tech companies, I would not be surprised in the next few years many big US tech companies will fill for bankruptcy.



https://www.foxbusiness.com/markets/qualcomm-to-cut-more-than-1500-jobs

Meanwhile, investors are very optimisic about the outlook of China's domestic chip makers, sector leaders like Guorui Tech grow 80%, Ziguang Chip grow near 100% since Feb amid the cloud of trade war, significantly outperform the market index.

Chinese domestic chip market is not that much. You include primarily chips that are destined for export in mobiles which are made in China.

If Apple, and other companies during a trade war, have to move their production elsewhere, than the Chinese chip market would shrink since such chips won't be counted anymore.

Hence, in effect, Chinese leverage will shrink.

 

[52051]

Huawei can make all the key chips that ZTE bought from the US suppilers, althrough Huawei is a competitor to ZTE, but China government can always force Huawei to sell chips to ZTE.

Chinese domestic chip market is not that much. You include primarily chips that are destined for export in mobiles which are made in China.

If Apple, and other companies during a trade war, have to move their production elsewhere, than the Chinese chip market would shrink since such chips won't be counted anymore.

Hence, in effect, Chinese leverage will shrink.

China's chip build the world best supercomputer and will build the world first three exascale supercomputer, with processes almost 2 gen behind that of Intel's design, and still get better performance and most importantly performance per watt comparing that of the intel's design.

Yes, with China's very smart workforce, we can sure make more from less, just be tunned.

 

[Bussard Ramjet]

Huawei can make all the key chips that ZTE bought from the US suppilers, althrough Huawei is a competitor to ZTE, but China government can always force Huawei to sell chips to ZTE.

Huawei can indeed make a lot of chips, but not all. It still uses some broadcom, texas instruments, and qorvo components.

Apart from that, not having access to Google Apps is pretty much a deathblow to any smartphone company outside China.

China's chip build the world best supercomputer and will build the world first three exascale supercomputer, with processes almost 2 gen behind that of Intel's design, and still get better performance and most importantly performance per watt comparing that of the intel's design.

Yes, with China's very smart workforce, we can sure make more from less, just be tunned.

China's chip doesn't power the world's best supercomputer.

It powers the world's fastest linpack solver.

And if Chinese are so completely self reliant, why is it that only a few large supercomputers use those chips? Why not everyone else? Why are they not found in Chinese data centers, and servers etc.

The reason is that they are not suited for those tasks, and don't have the requisite ecosystem of advanced applications.

 

[52051]

Usually I dont want to waste my time on indians, but your retarded argument are beyond bound so I make an exception here:

Huawei can indeed make a lot of chips, but not all. It still uses some broadcom, texas instruments, and qorvo components.

Apart from that, not having access to Google Apps is pretty much a deathblow to any smartphone company outside China.

You know who write the most google APPs?

And do you even know China has banned Google's own andorid service since years ago?

China's chip doesn't power the world's best supercomputer.

It powers the world's fastest linpack solver.

And if Chinese are so completely self reliant, why is it that only a few large supercomputers use those chips? Why not everyone else? Why are they not found in Chinese data centers, and servers etc.

The reason is that they are not suited for those tasks, and don't have the requisite ecosystem of advanced applications.

Yet the Top 500 supercomputer are ranked by measured linpack performance and China win three ACM Gordon Bell Prize with this supercomputer, including one task that achieve almost 40%+ of peak floating point efficiency (if you even know how hard it is to do so, few can even write a toy program that achieve such efficiency on your pitful home PC, let along science computing programs on supercomputers).

I am pretty sure the supercomputer experters know better than an indian like you.

 

[Bussard Ramjet]

You know who write the most google APPs?

And do you even know China has banned Google's own andorid service since years ago?

Yes, and no doubt these companies will face no issues in China. But what about India, Germany, Australia. In India, at least one cannot survive without Google Ecosystem. And these companies are now getting a larger and larger of their revenue share outside.

Yet the Top 500 supercomputer are ranked by measured linpack performance and China win three ACM Gordon Bell Prize with this supercomputer, including one task that achieve almost 40%+ of peak floating point efficiency.

I am pretty sure the supercomputer experters know better than an indian like you.

My friend. Firstly, AFAIK, Taihulight won two Gordon Bell Prizes as of now, but perhaps I will check once more.

The other being my friend, the same question. Why is it that these chips have not found their way into general purpose data centers and servers. The answer lies there my friend.

 

[52051]

Yes, and no doubt these companies will face no issues in China. But what about India, Germany, Australia. In India, at least one cannot survive without Google Ecosystem. And these companies are now getting a larger and larger of their revenue share outside.



My friend. Firstly, AFAIK, Taihulight won two Gordon Bell Prizes as of now, but perhaps I will check once more.

The other being my friend, the same question. Why is it that these chips have not found their way into general purpose data centers and servers. The answer lies there my friend.

India's market is tiny, india's market is less per-capita wise comparing to even Africa, so just know your place.

As for Europe, actually EU are at least stay netural in this trade war if you even follow the recent news, so it's just China vs US.

Yes, and no doubt these companies will face no issues in China. But what about India, Germany, Australia. In India, at least one cannot survive without Google Ecosystem. And these companies are now getting a larger and larger of their revenue share outside.



My friend. Firstly, AFAIK, Taihulight won two Gordon Bell Prizes as of now, but perhaps I will check once more.

The other being my friend, the same question. Why is it that these chips have not found their way into general purpose data centers and servers. The answer lies there my friend.

Chips dont find its general purpose market is simply become X86 is a highly patented and highly protected market and so are the many many x86-based applications and softwares.

To setup a whole new enviorment based on a new ISA needs significant investment and determination, however with the aids of Trade War, China may finally get the determination to go ahead that routine, and push an alternative PC ISA to x86, and China has the talents/resource and market to become successful at that, as China's supercomputer history indicates.

 

[Bussard Ramjet]

Chips dont find its general purpose market is simply become X86 is a highly patented and highly protected market and so are the many many x86-based applications and softwares.

To setup a whole new enviorment based on a new ISA needs significant investment and determination, however with the aids of Trade War, China may finally get the determination to go ahead that routine, and push an alternative PC ISA to x86, and China has the talents/resource and market to become successful at that, as China's supercomputer history indicates.

Exactly, my friend. Now you come to the point. But setting up anything rivaling x86 ISA and its ecosystem would require probably a decade or more of intense all in hardwork by thousands of thousands of coders.

It is not an easy task, and if US restricts chips it would severly dent China.

The better option is to opt for ARM architecture, and design chips using ARM cores, and plug in, into this ecosystem. There are already some players who are designing server and supercomputing chips using ARM cores.

But all this needs time. Right now is not the time to fight.

 

[52051]

Exactly, my friend. Now you come to the point. But setting up anything rivaling x86 ISA and its ecosystem would require probably a decade or more of intense all in hardwork by thousands of thousands of coders.

It is not an easy task, and if US restricts chips it would severly dent China.

The better option is to opt for ARM architecture, and design chips using ARM cores, and plug in, into this ecosystem. There are already some players who are designing server and supercomputing chips using ARM cores.

But all this needs time. Right now is not the time to fight.

In a full scale trade war, what make China still respect x86's IP from US companies? even India dont respect IP of US medine companies.

 

[Bussard Ramjet]

In a full scale trade war, what make China still respect x86's IP from US companies? even India dont respect IP of US medine companies.

True, however, Intel and AMD still have a design capability that China currently doesn't have. And it is very hard to replicate and study CPU under zoom. Similarly, China doesn't also have the capability to manufacture CPU at advanced nodes, and has no ability to produce any chips without external help.

The other thing you need to keep in mind is that Chinese companies also have to compete in other markets like Europe, Japan, and India.

I think you should hold your horses and wait for some more time, so that you are in better shape.

 

[xyxmt]

Qualcomm should open a new company (not with the name of Qualcomm) in Taiwan, Korea or Japan, export their chips there, and from that company goes to ZTE. Everyone happy.

Just like what China do with their Steel. They export the steel to Vietnam and Korea, and then both Korea and Vietnam sell the steel to USA. Everyone happy, everyone get profit.

I don't think Trump will mind that he is just showing how tough he is to his retard supporters

 

[Bussard Ramjet]

Huawei can make all the key chips that ZTE bought from the US suppilers, althrough Huawei is a competitor to ZTE, but China government can always force Huawei to sell chips to ZTE.

Huawei is absent from the whole RF front end supply chain.

India's market is tiny, india's market is less per-capita wise comparing to even Africa, so just know your place.

As for Europe, actually EU are at least stay netural in this trade war if you even follow the recent news, so it's just China vs US.

For some reason I didn't see this before.

India is the second largest smartphone market in the world. While ASP may be still smaller, it is one of the largest markets even in terms of revenues.

Other than that, while Europe may be neutral (which is not guaranteed) but US sanctions will hurt Chinese brands in Europe. For example, Huawei is big in Europe, but European customers won't be able to tolerate a smartphone without Google Apps for example.