As we all know, in recent years, the United States has created many obstacles to our chip industry. The United States, which has fully enjoyed the benefits of globalization, is using the results of globalization to attack our chip industry. Chips are an heavy asset industry. Research and development of chips requires a large amount of investment, so their sales must rely on global digestion, and the Chinese market accounts for about 35% of the world.
However, the technological hegemony of the United States has shown the world that it is still necessary to be self-sufficient in the chip industry. Europe is also investing in this area. The chip bill subsidy measures of tens of billions of euros are the most obvious proof. However, in terms of chip self-sufficiency, we must do more fully. Even European think tanks have recommended that and the EU learn from China's experience.
Just nine days ago, we have released the native Chiplet technology standard known as the "China Chip Standard". Small chips are the mainstream direction of chip development in the future. The formulation of this standard will fully combine our software and hardware advantages in chip design and manufacturing, and use mature processes to create high-performance chip products.
On the ninth day after the release of the standard, we received another good news about domestic chips. Domestic company Jiefa Technology said that its automotive MCU chips have achieved high-quality domestic replacement of international giants, and its MCU chips have reached the level of a nationally produced supply chain.
Many people may not understand what kind of chip MCU is. The automotive MCU chip is the brain of the car and controls the entire electronic system of the car, so it is very important. The automotive chip is very different from other consumer electronics chips. Because cars have special requirements for stability and safety, the technical difficulty threshold for car-grade chips is not low.
From a global perspective, among the chip giants in the MCU field, the top five in the world are foreign companies, including three European companies, one American company and one Japanese company. Among them, the top three in the world are occupied by European, American and Japanese companies, namely NXP in Europe, Microchip Technology in the United States and Renesas Electronics in Japan. Europe's STMicroelectronics and Infineon occupy the fourth and fifth positions.
It can be said that these five giants have taken away 80% to 90% of the market share of in the MCU market, and are still using continuous acquisitions to expand their strength. Therefore, if they can achieve domestic substitution in this market, it actually has more obvious practical significance.
And I believe everyone has felt that the automobile industry is undergoing a once-in-a-century change. The era of fuel vehicles is ending, and the era of electric vehicles and is coming. During this change, our domestic electric vehicles have begun to exert force, so it is even more important to achieve self-sufficiency in chips. Otherwise, just like in the computer age, they are actually making wedding dresses for foreign chip giants. The more they sell, the greater their dependence on foreign chip giants.
However, Jiefa Technology's MCU chip is only a microcosm of our chip localization. In fact, in the field of car-grade chips, we are making breakthroughs in various fields, such as car-grade AI chips. Volkswagen has established a joint venture with the domestic AI chip company Horizon, which was unimaginable before. BYD has also achieved self-research and production in the field of car-grade chips.
This reminds us of what the central media said. We must master core technology on chips, conduct independent research and development, and give up all illusions. It can be said that the central media’s words have worked. More and more domestic chip companies have launched products that can replace the chips of international giants, and they have also achieved localization in the supply chain. This may be why European think tanks recommend learning from China’s experience. We are full of expectations for the future of domestic chips.
