Yeah, I wouldn't put this in the category of interlocking ownership. This seems like a straight foundry deal -- Dongbu is going to build more image sensors for BYD on a foundry basis. But note that Dongbu is very eager to do business with more Chinese companies. And with good reason.
The Japanese kiretsu can be seen as outgrowths of the previous Zaibatsu groupings, and the Korean Chaebols are similar.
It's not clear from the EETimes piece that what is happening is interlocking ownership. This is simply a Chinese manufacturer attempting to serve the growing Chinese internal market, and seeking ways to get closer to it's customers.
Heading in that direction with the Chinese would not surprise me. The question is whether we would even notice. For all we know, it already exists. One of the issues with doing business in China is transparency, and ownership is one of those things that can be hard to pin down.
This reminds me a bit of the early 80s when some Japanese chipmakers started forming keiretsu with other companies. Do you think we're heading in that direction with the Chinese? What would be the impact on the chip industry if that were so?
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