As the "food" of the industrial age, the importance of chips is undoubted. However, in the context of a long period of high dependence on the United States and other Western countries for chip technology, China has had to deal with repeated repression and blockades from the United States.
Just recently, an authoritative research report showed that in the first quarter of 2024, the chip import volume of China's integrated circuit industry has declined sharply by 21.02%, with a total value of about 350 billion yuan. This means that in just a few months, U.S. semiconductor companies have lost about 350 billion yuan in orders. In this regard, overseas media lamented that "China is really moving", believing that this is the result of China's chip industry bucking the trend.
What prompted such a reversal in China's chip industry? How did it gradually get rid of its dependence on Western technology under the continuous pressure of the United States, and finally grasped the initiative of independent innovation? What are the implications and lessons learned?
1. From "lack of core and less soul" to "sail away"
As early as the beginning of the United States' chip ban on Chinese companies, Bill Gates warned that this would promote China's semiconductors to embark on the road of self-sufficiency, and the final loss would inevitably be the export-oriented American semiconductor market. However, the U.S. government apparently did not heed these suggestions, and instead continued to increase its crackdown on Chinese companies in the following years.
This unprecedented "chip war" has undoubtedly cast a shadow on China's semiconductor industry. As the "food" of the industrial age, chips have always been China's "short board". Prior to this, China's semiconductor industry generally had the problem of "lack of cores and souls", and was highly dependent on imported chips, especially advanced technology from American companies. This not only makes China constrained by others in key core technologies, but also creates considerable revenue profits for American companies.
However, in the face of the frenzied suppression of the United States, China's semiconductor industry finally realized the urgency and strategic value of independent innovation. Since 2019, a technological revolution from "following" to "leading" has quietly emerged.
First of all, the Chinese government has introduced a series of supportive policies to significantly increase investment in semiconductor research and development. It has successively established a mechanism for tackling key problems in major projects, and encouraged enterprises, universities, research institutes and other parties to actively participate in creating a good innovation ecology.
At the same time, Chinese semiconductor companies have also stepped up their efforts to innovate independently. Countless enterprises have devoted themselves to tackling key technologies to make up for long-term technical shortcomings. SMIC, for example, has made a breakthrough in the most advanced 5nm process technology, setting a benchmark for China's chip industry.
This drive and determination of independent innovation ultimately promoted the rapid development of China's chip industry. According to the data, by the first quarter of 2024, the chip import volume of China's integrated circuit industry has declined sharply by 21.02%, which reflects that China's chips are realizing the transformation from "lack of cores and souls" to "sailing away".
2. From "passive defense" to "active offense"
With the rapid development of China's chip industry, a shift from "passive defense" to "active offense" is becoming more and more obvious.
In the context of frequent revisions to the rules and strict restrictions on chip exports in the United States, early Chinese chip companies were mainly forced to adopt a "passive defense" strategy. On the one hand, they purchase domestic alternative chips as much as possible, and on the other hand, they have greatly improved their independent research and development capabilities to reduce their dependence on imported chips.
However, with the successive implementation of this series of measures, China's chip industry has begun to show strong independent innovation strength. Among them, the most prominent is a series of breakthroughs in key core technology fields.
From the independent research and development of the HarmonyOS to the successful production of 5nm chips, China's chip industry has demonstrated remarkable innovation capabilities. This has not only dramatically reduced their dependence on American technology, but has also allowed Chinese companies to surpass the West in some areas.
It is the successive emergence of these innovative achievements that makes China's chip industry no longer passively defend against the suppression of the United States, but take the initiative to take an "offensive" posture.
On the one hand, Chinese companies have taken the initiative to optimize their domestic supply chains and significantly increase the localization rate of key components. The disassembly report shows that the localization rate of some Chinese mobile phones has exceeded 90%, and it is completely possible to get rid of dependence on American companies. This has undoubtedly greatly enhanced the anti-risk ability of Chinese chip companies, making them comfortable in the new round of restrictions in the United States.
On the other hand, China's chip industry also takes the initiative to expand the global market and give full play to its own technological advantages. From operating systems to smart chips, Chinese companies are taking a more proactive attitude to promote the application and promotion of their own brands and technologies around the world. This not only allows Chinese chips to win more international discourse, but also lays the foundation for the future global layout.
In general, this shift from "passive defense" to "active offense" is a key confirmation of China's chip industry from following to leading. It not only reflects the continuous innovation and breakthroughs of Chinese enterprises in key technologies, but also shows their initiative in the global market. This will undoubtedly promote China's chip industry to achieve a historic turning point from catching up to leading.
3. From "Internal Reform" to "Global Layout"
While independent innovation and active attack, China's chip industry is also focusing on promoting the strategic transformation from "internal reform" to "global layout".
First of all, in terms of internal reform, Chinese chip companies pay close attention to the coordinated development of the upstream and downstream of the industrial chain, and constantly improve the supporting system. On the one hand, they have greatly improved the localization level of key raw materials and equipment, and reduced the risks and hidden dangers of the supply chain. On the other hand, they also actively promote the deep integration of upstream and downstream enterprises, form closer industrial alliances, and enhance overall competitiveness.
For example, SMIC has not only achieved breakthroughs in manufacturing processes, but also carried out extensive cooperation with upstream materials and equipment companies to jointly promote the technological upgrading of China's chip industry. This internal reform not only enhances the anti-risk ability of Chinese chip companies, but also lays a solid foundation for the subsequent globalization layout.
In terms of global layout, Chinese chip companies are actively expanding overseas markets and establishing a sound international marketing network. They give full play to their technological advantages in some fields, take the initiative to export Chinese chip brands, and help China's semiconductor industry go global.
Taking Huawei HiSilicon as an example, its Kirin series chips are not only widely used in Huawei's own terminal products, but also successfully entered the supply chain of other global brand mobile phones. This not only enhances the influence of Chinese chips in the world, but also provides a solid foundation for Chinese enterprises to expand in overseas markets.
At the same time, Chinese chip companies are also actively integrating into the global industrial chain through overseas mergers and acquisitions, joint ventures and other ways. Not only do they have direct access to advanced technology and channel resources, but they can also better get close to the end market and improve the localization and adaptability of products. This global layout not only enhances the competitiveness of China's chip industry, but also lays a good foundation for future international development.
In general, from "internal reform" to "global layout", China's chip industry is undergoing a deep strategic transformation. This not only reflects its continuous improvement of independent innovation capabilities and active offensive awareness, but also highlights its long-term vision in the optimization of the industrial chain and global layout.
It can be said that this transformation from "lack of core and less soul" to "sailing away" has undoubtedly witnessed a historic turning point in China's chip industry from following to leading. In the future, with the continuous breakthrough of China's chip technology and the continuous improvement of market share, we have reason to believe that China's chip will become an important force leading the development of the global semiconductor industry.
4. Enlightenment and reflection
The rise of China's chip industry from "lack of core and soul" to "sailing" has undoubtedly provided us with many valuable inspirations.
First of all, independent innovation is the fundamental driving force for the take-off of the chip industry. When the United States frequently introduced repressive measures, Chinese companies did not choose to respond passively, but took the initiative to increase the intensity of key technology tackling. From the operating system to the manufacturing process, a series of innovative achievements have emerged, which has greatly enhanced the core competitiveness of China's chip industry. This verifies that only by insisting on independent innovation can we grasp the initiative of development in key areas.
Secondly, industrial chain coordination is the key to China's chip industry to overcome the "stuck neck" problem. Chinese enterprises have not only improved the localization level of key raw materials and equipment, but also formed a closer industrial alliance through deep integration of upstream and downstream. This not only enhances the ability to resist risks, but also lays the foundation for the future global layout. It can be seen that the coordinated development of the industrial chain is crucial to reshaping the independent and controllable supply chain system.
Third, a global vision is the key to China's chip industry to achieve "corner overtaking". Chinese companies are not only actively expanding overseas markets and exporting Chinese chip brands, but also integrating into the global industrial chain through overseas mergers and acquisitions. This not only enhances its international influence, but also injects new momentum into its future sustainable development. It can be seen that only by maintaining a global vision can China's chip industry truly realize the historic transformation from following to leading.
In short, the counterattack of China's chip industry from "lack of core and soul" to "sailing" has presented us with a magnificent picture of development. It not only reflects the unremitting pursuit of key technologies by Chinese enterprises, but also demonstrates their strategic vision in industrial chain synergy and global layout.
At present, although there is still a certain gap in China's chip industry in some fields, as long as it adheres to independent innovation, optimizes the industrial chain, and expands its global vision, I believe that China Chip will become a leader in the global semiconductor industry. This will not only promote the continuous enhancement of the mainland's scientific and technological strength, but also make an important contribution to the construction of a new global industrial pattern.