On: China hires over 100 TSMC engineers in push for chip leadership

[coreblocks]

Actually the major problem for most fabs (Intel/GloFo/Samsung/etc) is not that they can't make 7nm chips, it's they can't make it cheap enough (in high enough yields) to compete with TSMC. However in this case, China can subsidize SMIC to produce at a loss until they eventually catch up compared to the open market.

[godelski → coreblocks]

> subsidize [] to produce at a loss until they eventually catch up compared to the open market.

Isn't this effectively the Silicon Valley model? Corner the market, control, set price.