American chip company Texas Instruments recently reported that the price of chips plummeted by 90%, facing the problem of clearing inventory, Qualcomm has been surpassed by MediaTek for two consecutive years, recalling that more than a year ago, the United States chips were also snapped up by all parties, in order to ensure the supply of chips and had to invest huge amounts of money to hoard, it can be described as time-shifting, and what makes the American chip uncomfortable is that Chinese chips have now continued to make breakthroughs and reduced the demand for American chips.
The United States' approach to Huawei in 2019 triggered a global chip rush, in order to ensure chip supply, not only Chinese companies have no choice but to hoard chips, European and Japanese companies are hoarding chips, resulting in a tight supply situation for global chips, and by the end of 2020, chip prices began to soar, and in 2021, there was even a hundred-fold surge in chip prices.
During that time, the American chip can be described as a happy day, the profits of many American chip companies soared, after all, the United States chip occupies nearly 50% of the global chip market, the chip price surge benefited the most is the American chip, but the U.S. chip industry did not expect this artificial chip supply tension can not last after all.
The high price of chips has led to huge pressure on brand companies, brand companies have to increase the price of products, coupled with the impact of public health events in the past two years has led to a decline in people's income, cars, mobile phones, TVs and other products began to decline sharply in the first half of this year, and the demand for chips fell sharply.
At this time, it is the turn of the American chip companies to bear the pressure, the first to feel the pressure is the United States RADIO frequency chip companies Skyworks, Qorvo, etc., to the recent turn of the world's largest analog chip company Texas Instruments, of which Texas Instruments has the greatest pressure, inventory surge under the helpless chip price significantly reduced, the largest decline in the part of the chip price even fell by 90%.
The surge in CHIP inventory in the United States is also due to the breakthrough of Chinese chips, the production capacity of Chinese chips has surged in the past two years, breakthroughs have been made in storage, radio frequency, mobile phone chips, etc. The breakthrough of Chinese chips has increased the self-sufficiency rate, and the chip self-sufficiency rate in 2021 is estimated to reach 36% (calculated by output), and the import volume of chips in the first four months of this year has been significantly reduced by 24 billion pieces.
In fact, more than 70% of the chips required for China's manufacturing can be produced using Chinese mainland 14nm and mature processes that have been put into production, and at present, China has three new foundries among the top ten in the world, namely SMIC, Shanghai Huahong, and Jinghe Integration, highlighting that domestic chips are relying heavily on domestic chip foundries for production, which continues to improve the self-sufficiency rate of domestic chips.
China is the world's largest manufacturer, in 2021 China's procurement of chips up to more than 400 billion US dollars, accounting for more than 60% of the global chip market, The sharp rise in China's chip self-sufficiency rate has reduced the number of chips imported from the United States, coupled with the decline in many industries around the world, the superimposed influence has led to the high inventory of chips in the United States and the collapse of prices.
At present, China's chip capacity expansion is still continuing, China's two major memory chip companies are currently promoting the second phase of the project, it is expected that china's memory chip production capacity will triple after the second phase of the project is put into production, and a variety of other chips are also accelerating research and development, of which due to the lack of Huawei P50 Pro's lack of 5G RF chips in the United States and can not support 5G 5G RF chips that have attracted attention are also rapidly expanding, and the RF chips produced in China in 2021 have reached 10% of the global market share. It can be expected that China's imports of chips from the United States will decline further in the future.
Not only is China accelerating the expansion of chip production capacity, But also economies such as Europe and Japan are also investing in chips, and they have found the importance of enhancing chip self-sufficiency from the situation in the past two years, which has had a profound impact on American chips.
It can be seen that the measures taken by the United States since 2019, although it has created a temporary boom for the US chip industry, has promoted the efforts of various economies around the world to develop the chip industry, and ultimately the long-term interests of the US chip industry have been damaged.