Germany Plans To Approve Chinese Takeover of Elmos' Chip Production (politico.eu) 42
Despite warnings from intelligence agencies, Germany's government is set to approve a Chinese takeover of a German company's microchips production facility. Reuters reports: German outlet Handelsblatt reported Thursday that the deal -- which would see a takeover of the semiconductor production of Dortmund-based Elmos by Sweden's Silex, a wholly owned subsidiary of China's Sai Microelectronics -- was set to get the green light against security advice. The deal is currently being reviewed by the German economy ministry. A final decision on approval is expected within the next few weeks.
Elmos is one of Germany's smaller semiconductor companies, which mainly produces chips for the automotive industry. Silex plans to take over the plant for 85 million euros. Elmos will use the investment to give up its own production and instead process chips bought from contract manufacturers. The German government says that the technology Elmos uses is old and not to expect any outflow of critical know-how to China. The German security authorities, on the other hand, argued that they are not only concerned about exiting knowledge, but also that China is systematically increasing its chip production capacities. According to Handelsblatt, they advised the government to block the deal. The president of the Federal Intelligence Service (BND) also recently warned that China is deliberately buying into strategic industries in order to exert pressure on other countries.
Elmos is one of Germany's smaller semiconductor companies, which mainly produces chips for the automotive industry. Silex plans to take over the plant for 85 million euros. Elmos will use the investment to give up its own production and instead process chips bought from contract manufacturers. The German government says that the technology Elmos uses is old and not to expect any outflow of critical know-how to China. The German security authorities, on the other hand, argued that they are not only concerned about exiting knowledge, but also that China is systematically increasing its chip production capacities. According to Handelsblatt, they advised the government to block the deal. The president of the Federal Intelligence Service (BND) also recently warned that China is deliberately buying into strategic industries in order to exert pressure on other countries.
Tickle Me Elmo (Score:2)
Nice title... How is this related to Tickle Me Elmo chip production?
Re: Why not? (Score:2)
Re: Why not? (Score:2)
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The US doesn't recognize the ICJ, because of the 3 parties you mentioned, the US is the most honest.
China and Russia openly flout the ICJ when it goes against them.
The US is the only party that comes right out and says it clearly: We won't accept the jurisdiction of this court.
Now I'm not arguing that disregard for the ICJ is a good thing. I think it's a good institution.
But comparing the US against the malcontents of Russia and China? You're too fucking stupid to be hav
Re: (Score:1)
Now come on. The US is a hegemon, there's no question about that. It's done some dastardly shit. Also no question about that.
But threat to the west?
The west has enjoyed an era of relative peace on the US' back. You beg us to keep our troops and weapons in your countries. When you ask us to leave, we do, but most of the time you change your mind after you realize your political grandstanding has real-world consequences.
Re: Why not? (Score:1)
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But at the same time, that's largely where the Pax Americana derives from. A fully militarized Europe may try to start another world war.
Re: Why not? (Score:1)
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The US maintains about 100k troops in Europe (increased by 40k after Ukraine invasion, at the request of- you guessed it, Europeans)
You're letting your hatred get in the way of your parsing of reality.
They make freaking automotive chips. (Score:1)
Not exactly high tech, and definitely not something that China already can't manufacture.
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China was incapable of making their own ballpoint pens until 2017. They supposedly couldn't make the balls with enough precision.
MOST COUNTRIES are incapable of making the balls. And just like MOST COUNTRIES, it didn't do it because it wasn't economically or financially important enough to do so.
.
The moment the government made it a priority, they eventually became capable of doing it. According to this, it took them FIVE YEARS: https://mashable.com/article/c... [mashable.com]
Don't over-estimate China's capabilities.
You're a fucking moron, if THIS is you argument.
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They got tired of Russia telling them to just use pencils.
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If China produces it, it may be embargoed by American trade sanctions in certain markets. Elmos may be able to avoid trade sanctions. Also China can now influence to whom Elmos sells their products.
Re:They make freaking automotive chips. (Score:4, Informative)
Elmos's newest line uses a 350 nm process, which was state-of-the-art 30 years ago.
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By allowing this to walk out, it will be difficult for Germany and other western nations to hang on to manufacturing such things.
And it is MUCH easier to step UPWARDS, then it is to step DOWNWARDS, in established arenas. In new ones, the smart ones will start at the top like producing a 150K EV and then work their way towards a 20K EV. But with Toys, ap
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By allowing this to walk out
Factories don't "walk out". The manufacturing will stay in Germany. Only the ownership will change.
China currently manufactures 22 nm ICs. So owning a 350 nm line with 30-year-old tech provides them with no technology advantage.
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China bought a number of businesses in America and then grabbed all of the equipment and shipped it back to China to start manufacturing with. And the issue is not the tech. It is the owning of the chips in Europe and moving them out. They will be much cheaper in CHina then to ship them to Europe. As such, manufacturing of other items will move. To China.
Chinese Elmo? (Score:2)
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He'll speak Swedish with a Chinese accent.
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One of the Teletubbies (Po) speaks Cantonese even in the English edition of the series.
https://teletubbies.fandom.com/wiki/Po [fandom.com]
Re: Chinese Elmo? (Score:1)
I knew Teletubbies were a sleeper cell.
Very stupid for Deutschland. (Score:4, Insightful)
Problem is, that the low-end is where the REAL manufacturing occurs. It is all of the heavily used parts. Obviously, this is being pushed by Xi and is smart on China's part and extremely stupid on Germany's.
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greatly increasing inflation and costs no matter what.
I don't know about greatly but the era of globalized trade had already peaked. The US and Europe are already "forced" to identify "critical" industries, and to ensure there is some domestic production capacity. That is the lesson of COVID and PPE. Frankly, I'll choose some inflation if it means that I'll have PPE available for the next pandemic, along with semiconductors for all my domestic industries that depend on them. Hopefully, we're doing the same for chemical reagents and medical tools & inst
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My costs haven't gone up 10%. Not even close.
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America is the world's superpower. We're not going to cripple ourselves economically the way the Germans voluntarily did by becoming "dependent" on Russia's fossil fuel sales. The bottom line is there's too much "globalization" when your society may collapse from lack of a "crucial" economic component. We need to "reshore" some critical industries, and that means fewer cheaper goods overseas and some goods become more expensive than they were 5-10 years ago. If our standard of living goes down, so be it
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Apparently there's a lot of stupid people who don't understand that outsourcing those simple things that are critical to your economy is stupid.
Equally stupid are the people who don't think an economy can do two things at once, like produce state-of-the-art chips as well as cheap commodity chips.
What's wrong, buttercup? That brain too tiny to hold two thoughts at once?
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"in order to exert pressure on other countries." (Score:2)
Which is exactly what "other countries" are doing to China right now by blocking their access to chip manufacturing ? So it's ok when the west does it to china, but if china tries to fight back they're somehow evil and need to be stopped ? Why not just let them be, it's not a zero sum game, there'll just be more chip production
More stupid from Germany. (Score:1)