As a core component of modern technology, the importance of chips is undoubted. Chips are used in various fields around the world, whether in various devices such as cars, mobile phones, and computers. It can be said that the manufacture of chips is a strategic matter for a country and even the whole world. In 2022, China will play an irreplaceable role and become one of the important centers of global chip manufacturing. This article will delve into this topic and explore the reasons and implications behind it.
【Background】
Globally, chips have always been the core products in the technology industry, especially in recent years, with the rapid development of artificial intelligence, cloud computing and the Internet of Things, the market demand for high-end chips is also increasing. However, in this field, China has always been in a passive position, compared with the United States, South Korea, Taiwan and other places, China's chip manufacturing technology strength and output is relatively low.
However, in fact, in recent years, the Chinese government has invested huge amounts of money in the chip industry, actively promoted relevant policies, strengthened the introduction and training of talents, and promoted the development of related enterprises. Although the initial investment of such a measure is huge, the return is also very significant. In the future of 2022, 70% of the world's chips will come to China to "travel", a fact that has become a hot topic in international public opinion and the market.
【Analysis】
For the rapid rise of China's chip industry, it can be summarized as follows:
1. Policy support. In recent years, the Chinese government has issued many relevant policies in the chip industry, vigorously supporting the research and development and production of enterprises, strengthening the introduction and training of talents, and improving the competitiveness and innovation ability of the industry. At the same time, the government also encourages domestic enterprises to cooperate and exchange with foreign enterprises to improve the internationalization level of the entire industry.
Second, technological progress. In the past, the technical level of China's chip industry has been at a low level, but in recent years, with the support of the government, relevant enterprises have strengthened investment in scientific research and continuously launched new technologies and products. At present, some large domestic enterprises such as SMIC and Brilliance Microelectronics have begun to have certain independent research and development capabilities, and many internationally renowned chip companies have also set up R&D centers or partners in China.
Third, market demand. In modern society, the demand for chips with high performance, high speed, low power consumption and high reliability requirements is increasing, which provides broad market opportunities for Chinese chip companies. With the dual support of policy and technological progress, relevant enterprises are also actively expanding domestic and overseas markets, strengthening cooperation and exchanges with customers to meet market demand.
While the global chip shortage is a growing concern, a news story in May 2022 analyzed China's dependence on global chip production, saying that China already controls 70% of global chip production. This means that if there is a problem in China's semiconductor industry, the world is likely to face a more serious chip shortage.
The outbreak of the new crown epidemic in 2020 was the beginning of a blow to the chip industry supply chain, and later ship blockages, fires, power outages and other problems also caused more bottlenecks. Because of the global landscape, even if a company's assembly line is in Europe or the United States, it may need to import components from China. Apple, for example, said that although its production facilities are located in Asia and elsewhere, it has "no guarantee" that it will be able to meet orders for chips in a timely manner due to the "complexity and possible uncertainty" of global supply chains.
China is widely regarded as one of the world's most important chip-making countries for decades. According to a May 2022 report, 70% of the world's chips have come to China to "travel". That's a staggering figure, which means chip production in the rest of the world has been drastically cut. This pattern is mainly due to the fact that China has accelerated the development of its semiconductor industry in the past few years through government incentives and market competition. In China, the coordination between industry innovation, R&D and production is very close, and these factors give China a considerable advantage in global chip manufacturing.
However, with the second half of 2022 approaching, China is also facing more and more attention and challenges. As a global manufacturing hegemon, most of the chips produced in China are mainly used in consumer electronics such as mobile phones and tablets. In terms of modern military equipment, China also needs a large number of high-end chips, such as avionics systems, satellite navigation and reconnaissance equipment. Moreover, China also needs more computing power to process data. As a result, China is stepping up to develop its own chip industry to ensure its domestic demand is met. While China has made some progress, there are still many challenges to overcome.
At the same time, global chip production is also experiencing a period of turbulent transition. Some companies in Silicon Valley have put R&D and manufacturing together, a key trend in the industry and one of the models for how China can improve chip quality and quantity. In addition, semiconductor manufacturers are actively looking for new ways to solve supply chain problems, such as using advanced technologies to preserve memory and extend the life of chips.
All told, the news that 70% of the world's chips are controlled by China has prompted a reassessment of the dependence on global chip production. That figure may be an exaggeration, but it still shows the important role China plays in global chip production. However, over time, the global chip industry is likely to usher in new changes and challenges.