Because it takes a year or so for a new factory to be built, companies must invest the most at the bottom of the cycle, when profits are low, so as to have new capacity ready when the market recovers.

ECONOMIST: Semiconductors: America, memory-chip Lazarus | The

Any company (of which at least 40% must be Chinese) setting up a factory will have to pay the JV management fees.

FORBES: China's Khyber Pass