It is reported that SMIC, the largest chip company in Chinese mainland, is promoting the expansion of 12-inch fabs on a large scale, with an investment of up to 170 billion yuan, with the production of these new fabs, the daily output of chips can reach 170 million, plus the production capacity of chip manufacturers such as Shanghai Huahong and Jinghe Integration, with a daily output of more than 200 million.
Chinese mainland chip companies have always maintained the pace of rapid expansion, and now in the face of global chip overcapacity, they are expanding against the trend, mainly because in the chip downturn stage, it is more favorable for Chinese mainland chip companies, so the pace of expansion has been accelerated.
Chinese mainland is the world's largest chip market, 2021 purchased 60% of the world's chips, but Chinese mainland's chip self-sufficiency rate is currently only about 30%, according to the plan by 2025 will achieve 70% chip self-sufficiency rate, so Chinese mainland chip industry still has huge room for growth.
Chinese mainland chip manufacturing industry chooses to expand against the trend, because the chip downlink stage can reduce the cost of chip capacity expansion, due to overseas chip manufacturing companies have reduced or even stopped expanding, chip equipment began to appear excessive, in this case, the price of chip equipment is naturally more affordable; Then there is the previous due to the global chip capacity expansion competition, for various reasons, China can not buy enough chip manufacturing equipment, and even had to buy second-hand equipment from Japan, and now there is a surplus of chip manufacturing equipment, which is a good time to buy chip manufacturing equipment Chinese mainland chip manufacturing industry.
It is reported that before ASML because of the tight supply of lithography machine, China's chip manufacturing industry needs mature DUV lithography machine can not be fully satisfied, now ASML lithography machine began to surplus, ASML began to actively sell DUV lithography machine to China, of which SMIC has long placed an order for 30 DUV lithography machine will soon complete the delivery, which also shows that in the chip downlink stage to expand chip production capacity will no longer be constrained by the supply of lithography machine.
Compared with the Chinese mainland chip is currently expanding chip manufacturing capacity, the world's largest chip manufacturing company TSMC is successively choked by the US chip, TSMC intends to further increase the chip foundry price, Apple took the lead in rejecting, and then NVIDIA also explicitly refused, it can be expected that more US chips will refuse TSMC's price increase, which is mainly because TSMC was choked by US chips.
TSMC has nearly 70% of its revenue from American chips, Apple is TSMC's largest customer - contributing 26% of TSMC's revenue, and seven of TSMC's top seven customers are American chip companies; Many of the technologies and materials used by TSMC to produce chips come from the United States, so TSMC is quite passive in this case.
This front desk accumulation has planned to get more revenue from the Chinese mainland chip market, reduce the dependence on the United States chip, but as TSMC takes the chip subsidy of the United States, TSMC's 5nm factory in the United States is also in progress, which will make it difficult for TSMC to obtain more revenue from the Chinese mainland market in the future.
Of course Chinese mainland chip manufacturers to expand production capacity will also help Chinese mainland chip design companies reduce the demand for TSMC, TSMC from the Chinese mainland to obtain income is also increasing, after all Chinese mainland chip design companies have deeply understood that only Chinese mainland their own chip manufacturers can provide more reliable production capacity.
Then there is the global chip industry demand for advanced technology decline, advanced technology can provide stronger performance, but the cost is higher, reliability is not as good as mature process chips, today's booming automotive chips just need more mature process chips, automotive chips are more considerate of cost, reliability and durability, etc., and Chinese mainland expansion of chip production capacity is precisely mature processes, so all this has led to TSMC in the chip downlink stage in a disadvantageous position.
As the chip industry enters a downward stage, the difficulty of advanced process research and development has led to the stagnation of advanced process research and development, which will provide time for Chinese mainland chip manufacturing, and it can be expected that in a few years, Chinese mainland chips will make progress in 7nm and even more advanced processes, at which time the advantages of chip manufacturers such as TSMC will be further weakened, and Chinese mainland chips will accelerate the prosperity.