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In the world, the integrated circuit industry is undoubtedly an important part of the high-tech industry and the key foundation for the development of modern economy.
Today, the mainland's integrated circuit industry is in a golden period of rapid growth, and domestic chips have achieved leapfrog development from scratch, successfully breaking through the long-term dependence on foreign chips.
According to recently released data, mainland chip production increased by as much as 40% year-on-year in the first quarter, and such a strong growth momentum indicates that the domestic chip industry is about to usher in explosive development.
At the same time, after encountering the competitive impact of the mainland's chip industry, the life of related companies in the United States has become more and more difficult.
The reason for the explosion of domestic chip production
For a long time, the mainland chip industry has been facing the embarrassing situation that the core technology is controlled by others. However, in the environment of "core" but not "weak", through policy support and enterprise efforts, the domestic chip field is now in a golden period of rapid development.
Under the guidance of the strategy of "manufacturing power", the mainland attaches great importance to the chip industry and vigorously supports the R&D and manufacturing of domestic chips.
For example, policies such as the "domestic substitution" strategy, the integrated circuit industry development fund, and tax incentives for chip enterprises have provided strong support for chip companies. Sufficient capital investment provides a solid backing for chip R&D innovation and industrial layout.
With the support of national policies, leading chip companies such as Huawei, SMIC, and Arrow Electronics have increased R&D investment, and their R&D systems have become increasingly perfect.
They actively deploy 28nm and below processes, promote process iteration, and continue to make technological breakthroughs. At the same time, it also strengthens the construction of talent team and lays the foundation for chip research and development.
The vigorous development of new technologies and new business formats such as 5G communications, artificial intelligence, industrial Internet, and new infrastructure has driven a surge in market demand for chips.
At the same time, consumption upgrades have also driven the growth of chip demand in many fields such as smartphones. This provides a strong impetus for the development of the chip industry.
Under the coordinated development of the upstream, midstream and downstream, the mainland chip industry ecosystem has been initially established. The design, manufacturing, packaging, testing and other links have been matched, which has effectively promoted the rapid increase in output.
At the same time, a large number of related materials and equipment companies are also thriving to provide support for the chip industry chain.
Driven by the above factors, the mainland's chip industry has developed rapidly and its output has increased significantly. According to the latest statistics, in the first quarter of 2022, the output of integrated circuits in mainland China increased by more than 40% year-on-year. This marks that domestic substitution has achieved phased results, and the domestic chip industry has ushered in spring.
The development of domestic chips has had an impact on American chip companies
While the mainland's chip industry is rising rapidly, American chip companies, which have long occupied a dominant position by relying on technology monopoly, have fallen into development difficulties and become extremely unhappy. Specifically, the development of domestic chips has brought at least the following impacts to American chip companies:
As the world's largest chip consumer, having a broad market space has always been the competitive advantage of American chip companies. However, with the substitution of domestic chips, the market share of American companies in the mainland has been squeezed. For example, Qualcomm, Nvidia and other sales in the mainland market have declined seriously.
Under the dual pressure of the epidemic and the macroeconomic environment, coupled with the loss of market share in the mainland, the profits of American chip companies have declined sharply. Intel, Nvidia and other companies continue to lower their performance expectations, and their stock prices continue to fall.
Due to the decline in performance, chip companies such as Intel and Nvidia were forced to take measures such as layoffs to reduce costs. In the first quarter of this year alone, these companies laid off tens of thousands of employees. The wave of layoffs has led to a weakening of the company's operational and R&D capabilities.
The U.S. semiconductor industry has been growing at double-digit rates in the past, but this year investment growth has slowed to single digits. The lack of investment will make it difficult to support its technological innovation, which will lead to its leading position in the global chip industry even more precarious.
The rapid development of domestic chips has had a multifaceted impact on American chip companies, making them fall into development difficulties. This also reflects from one side that the strength of the mainland's chip industry is increasing day by day and is moving towards a global manufacturing power.
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