Chinese chips do not underestimate Chinese chips! No one can refuse the Chinese market. Musk. Recently, NVIDIA's CED Huang Jenxun can be said to be infinite, and the AI artificial intelligence fire has driven NVIDIA's market value to exceed trillions of dollars, and an Alibaba has risen in one night.
Invest in the dry and listen to the words. Today we will talk about the domestic substitution of semiconductors. The current NVIDIA is simply in the field of science and technology, and in the future, no matter which company wants to engage in artificial intelligence, it will use NVIDIA's computing power chips. And this expenditure is not a small amount. Microsoft has spent tens of billions of dollars on OpenAI, and a significant portion of it has been fed to Nvidia. Artificial intelligence without computing power is equivalent to artificial intellectual disability without a "brain".
NVIDIA and CED Huang Jenxun really stand on the cusp of the times, but no matter how advanced the technology, if it cannot be sold to the consumer market, it is ultimately futile. It is no exaggeration to say that China is the world's largest semiconductor consumer market. In 2023, NVIDIA's revenue in China accounted for 47% of the total revenue, which is still in the R100 and H100. Can the United States really be able to completely trap China through the chip bill in the case of the embargo? U.S. companies will probably be the first to be unwilling. Who can accept that their revenue will be cut directly after losing the Chinese market.
Huang warned U.S. officials: One-third of the U.S. tech industry is in China, and what happens to U.S. companies' capacity if they don't sell to China? Now it coincides with the downward cycle of the semiconductor industry. Except for China, the semiconductor industry is growing against the trend because of domestic substitution, and other countries are shrinking. Samsung's first-quarter operating profit plunged 95 percent. (Source: CaiLian News, 2023-05-16) Micron announced a 40% reduction in capital expenditure. Intel announced a 10 billion cut in operating costs. (Data source: Interface News, 2022-10-28) And ASML, the only giant of lithography machines, can't sit still. "If the United States doesn't let him again, if the United States does not let him again, he may completely lose the Chinese market." ASML's CED eagerly stated in a speech that "the United States blindly restricts will only allow China to accelerate its own research." If the United States does not let them, China will be able to overcome this problem itself in about three years.
These American companies want to return to the Chinese market, since China's semiconductor technology is created by people, there are still some gaps, but technology is people after all, it is impossible to be "impermeable" all the time. It has long been not the first time that the West has blocked us. Atomic bombs, shield machines, space stations, satellite technology, aren't these all broken by us? The road to catching up with semiconductors does not have an impermeable wall in the world, and it may not be smooth sailing, but Chinese is not accepting defeat in their bones.
At present, we are close to the world's advanced level in chip design, and there is probably a gap of two to three generations between wafer foundry and the world's best. There are already Chinese manufacturers in the top three test packaging in the world, and the second phase of the National Fund for Semiconductor Equipment has been focused on investing in all aspects, and we are checking and filling gaps. Domestic substitution of semiconductors may be difficult in the short term, but in the long term, it must fluctuate upward, and fluctuations will be upward. The more we restrict, the more ruthless we have to be.
Are you optimistic about the development of China's semiconductor industry? Welcome to leave a message in the comment area and tell us your opinion. Well, this is the end of this video, and we'll see you in the next issue.
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