I don't know how long you haven't heard about the chip shortage? It turns out that the world's chip supply pattern has quietly changed.
It can be seen from the performance of chip companies in 2023 that the chip shortage is the biggest false proposition of this century.
Recently, SMIC released its financial results for the fourth quarter of 2023, with sales revenue up 3.6% quarter-on-quarter to $1,678.3 million, slightly above guidance. Full-year sales revenue was $6.32 billion, down 13% year-on-year. Gross margin was 19.3%. The monthly production capacity of 8 inches is 806,000 pieces, and the average capacity utilization rate is 75%.
SMIC is backed by China, the world's largest chip market, and its capacity utilization rate is only three-quarters, which means that it could have produced a quarter more chips, so why didn't it produce it? The reason is, of course, because of the market.
Other chip companies are even worse. Let's take a look at Intel, the industry leader, whose profits cannot be said to be cut in half, but according to the feet and necks. In 2023, Intel Corp. recorded its worst annual report in several years, and its profit plummeted by nearly 80%.
On top of the blue star, the chip is the least likely product to be in short supply, because it plays the magic trick of turning a hand of sand into gold coins. It's a real bit of gold. The sand that can be seen everywhere is the raw material for the production of chips, how do you let it be excessive?
The reason why there was a chip shortage in the first two years is the product of the superposition of the triple wave of natural disasters, man-made and technological revolutions, and there is a high probability that it will not appear again in the future.
The first is the epidemic that is still fresh in the memory of Bluestar people, making working from home a trend and driving up the consumption of computers and mobile phones.
Secondly, a large country cut off the supply of chips to the mainland.
Finally, the automotive intelligent technology revolution set off by the mainland has increased the use of automotive chips.
In the first two years, the popularity of the chip market stimulated the expansion of the production capacity of chip companies, but when the factory was built, it was suddenly found that there was no demand.
SMIC is still in a good situation, and there is still a huge need for domestic substitution in the domestic market.
Western chip companies are under pressure from a major country's policy to withdraw from the mainland. The ups and downs have naturally caused their financial reports to be overshadowed.
Only when there is a market can technology have the power to innovate. This is precisely what the West lacks. Lo and behold, as time goes on, there will only be more and more good news about the breakthrough of chips in the mainland. There is a shortage of chips, but I am afraid that it will not appear again.
Here is a good place to chant a poem:
Thousands of sails on the side of the sunken boat,
Ten thousand trees in front of the diseased tree;
At the end of the sea, the sky is the shore,
I am the peak of the mountain.
I wish the mainland chips an early rise!