In the face of final US sanctions, Huawei is under great pressure
As a Chinese tech giant, Huawei has been ahead of the global 5G technology for the past few years. However, due to the tense trade war between China and the United States, the US government imposed strict export controls on Huawei, restricting Huawei and SMIC's access to technology and chip equipment from the United States. This has led to tight supply and soaring prices in the global chip market.
In order to ensure its own chip supply, China began to stock a lot, and downstream companies around the world followed suit. However, the water and power crises and semiconductor factory fires in Taiwan and Japan have put more pressure on global chip supply and soaring prices. Faced with this situation, the United States intends to further squeeze the Chinese market and slow down China's research and development process by extending the immunity of South Korean chip manufacturers to import American chip equipment in China.
The U.S. trap: Squeeze the Chinese market and regain pricing power
The United States has been a global leader in semiconductors. However, due to the lack of manufacturing capacity, it cannot meet the rapid growth of global semiconductor demand. Therefore, the United States began to take measures to promote the return of the semiconductor industry to the United States, monopolize the market, and dominate pricing power. They forced large factories such as TSMC and Samsung to invest in the United States and gave huge subsidies.
However, this approach will only have a short-term squeeze effect on the Chinese market, and cannot change the trend of China's chip industry to occupy market share. China's Yangtze River Storage and Changxin have made a breakthrough in 7NM technology, which means that the domestic chip supply chain will be more stable, thereby reducing dependence on US chips. This will also promote the development of China's chip industry and reduce costs.
Market competition and falling prices: the impact on China's chip industry
The market is relentless and only seeks to maximize profits. If the United States further relaxes restrictions on Chinese chips, the domestic chip market will face great challenges through price dumping. At the same time, China's cost advantage is not obvious, so the price reduction will have an impact on the development of China's chip industry and R&D enthusiasm.
After years of hard work, China's chip industry has finally made a breakthrough, but if the price falls sharply, it will inevitably adversely affect the development of the industry.
Huawei's lessons: The beautiful lie of the global division of labor
Huawei's experience tells the world that the so-called "global division of labor" is just a beautiful lie woven by the United States to protect its own interests. In the face of US sanctions, Huawei has to rely on independent research and development and industrial chain improvement to ensure its own development.
This event reveals the importance and irreplaceability of China's chip industry in the global market. In the future development, China's chip industry will continue to develop and reach the peak of the global market with the wisdom and potential of the Chinese people.
The Trump administration's sanctions against Huawei and SMIC have brought great challenges to China's chip industry, but the Chinese people have not been defeated. Through independent research and development and industrial chain improvement, China has successfully broken through 7NM process chips and made outstanding achievements in Yangtze River Storage and Changxin. However, the United States continues to squeeze the Chinese market and the semiconductor industry, trying to re-monopolize the market and dominate pricing power.
This has put certain pressure on the development of China's chip industry, but China has a huge market and growing research and development capabilities. As long as we maintain independent innovation and reform and opening up, China's chip industry will usher in a brighter future.
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