China reduces purchases of chips, US chips avnche!
Recently, American chip companies have announced their poor performance one after another, and even have fallen sharply.
The market value of American chip companies has also fell sharply, showing the attitude of avnche.
The important reason for American chips to fall into such a dilemma is that China continues to reduce chip procurement volume.
In the past few years, China focused on products, and the chip industry, known as industrial grain, was in the hands of the United States.
As a result, the United States has made generous profits.
At that time, China Lenovo Group, the world's largest PC company, had only about 2%of the profit margin, while Intel received more than 20%of profits, and China and the United States took their needs.
However, since the United States has frequently restricted chip exports a few years ago, China has begun to force the chip industry.
In recent years, it has gradually broken the monopoly of American chips.
The days of American chips have begun to be uncomfortable, especially since this year, American chips have been reported to have high chip inventory.
In the second quarter of this year, Intel was the first loss of revenue and net profit in more than 20 years, highlighting the dilemma of American chips.
The United States thinks that it can prevent the development of the Chinese chip industry through controlling chip technology, chip equipment, etc.
However, China has improved its own chip industry chain and also cooperated with companies outside the United States to stabilize their feet and ensure the steady development of Chinese chips
Chin Huat Tan
As China chips manufacturing improves, the need to import western chips decreases. Western countries banning China only accelerate China's chips manufacturing capabilities.
U.S chips will be too expensive to sell and produce in the U.S. Once China starts shifting gears to researching and development, the U.S chip industry will get smaller and smaller. Eventually limited to only producing specialty chips. At some point, U.S companies will buy China's chips to make profits.
Necessity is the Mother of Invention.
So now it is expected that China will produce 70% of its chips in 2025. Astounding. I know that was the 5 year target, but thought that the target would not be met.
Now the US can't keep crying about stolen tech, China doesn't even want it
You can see the high numbers if Chinese graduates now returning home to China that use to stay overseas on completion of their course’s
This is building greater capacity within China in all areas and leading to quick advancements, while the USA is loosing new blood
The US has dest yed the chips market.
To be honest, I love this competition between US & China. Prior to this, you will encounter that upon buying one new item (mobile phone or computer et al) and in a few months time, they roll out a new version with slight improvement. Now I hope to see a large improvement in a new version, unlike current situation. Keep competing to our advantage
Less buying US chips mean Chinese made their own?
I always have felt American chip producers highly overpriced their chips. Now, with way cher Chinese chips, Chinese manufactured gadgets and appliances will be way cher. Big win for China again. American companies need to understand this... profit margins need to be reasonable. If China can prosper with razor thin margins, why not America? In the 50s, American companies have razor thin margins too and even develo 3rd world countries can afford to buy their products..... and America prospered.
Chinese scientist, abroad and home,need to join hands to win this new battle!
Independence is won step by step
I want to say something but before writing a word or two,I read all the comments here and I felt that I have nothing to say. Well done China. Asian age is coming.
China is fabricating over one billion chips a day and exporting more than 10% of those chips. Two years ago, it was buying about $400 billion in foreign chips with the US selling 60% of those chips and zero exports. Today, US chip purchases not only have declined but prices of these chips have taken a nose dive and US semiconductor company stocks have taken a $1.2 trillion dollar hit. Profits are becoming harder to come by and R&D funding is evaporating. Further, the US is ram up fab at the leading edge of 5nm and smaller. That market is in decline now and even TSMC has refocused on mature node chips and idled 4 EUV lithography machines and asked employees to take a vacation. The US could be in for a rude supply of a much smaller market than their new fabs can economically operate at. Further, the US could have a problem staffing these fabs.
It seems Biden's team did not think this through enough for a soft landing.
David Lo Pan
All China has to do is just honor their own agreements and follow international laws.
US chip industries will go bust !. US have to give heavy subsidies to sustain the survival of their industries. Without heavy export to China , this semiconductor will be heading nowhere with this high investment & high expenditures cost. US is good at spending but not that good in earning.
nothing can stop chinas advances.
Well done China.
West need to understand that technology is made by human being and another human being also can develop it, so don't think blockades can make you feel better
WHEN WILL U.S. CHIP COMPANIES WW START MASS LAYOFF???