Foreign media reported that Intel, the largest chip company in the United States, will lay off employees again due to its recession, and the number of layoffs may reach thousands. This is after NVIDIA and AMD have reported that their performance is poor, and another American chip

Foreign media reported that Intel, the largest chip company in the United States, will lay off again due to its performance recession, and the number of layoffs may reach thousands. This is after NVIDIA and AMD have all reported poor performance, and another American chip company has reported unfavorable news, and it seems that the decline of American chips has begun.

Intel's second quarter results showed that revenue fell by 22%, and net profit turned from profit to loss, with net profit plummeting 109% to a loss of US$454 million. Due to poor performance, the company's stock price has fallen continuously, and has fallen by more than 60% from its high point this year.

Recently, Intel released the 13th generation Core . Due to the upgrade of the chip architecture, the performance of this year's 13th generation Core processor has been greatly improved. Industry insiders laughed and said that Intel has really squeezed toothpaste this time. Originally, the industry expected that Intel would reverse its disadvantages in the PC processor market. However, judging from the news of Intel's layoffs, it shows that Intel is quite pessimistic about the future.

This is not the first American chip company to look at the future pessimistically. AMD recently announced its third-quarter performance forecast that revenue will decline by 16.4%, causing a sharp drop in stock prices. NVIDIA announced its net profit in the second quarter plummeted, and other American chips have also announced poor performance, which has led to the continued shrinking of the market value of US chips. Check US stock , and you can find that the market value of AMD, NVIDIA, and Intel has shrunk by more than 60%. Micron Technology is almost halved, and the market value of other chip materials and chip equipment companies is also mostly halved. The reason why

caused American chips to fall into such a tragic situation is the breakthroughs made by Chinese chips. Chinese chips have been broken in many chip industries in recent years, and efforts have been made to promote the replacement of domestic chips, resulting in an increasing surplus of American chips. Moreover, Chinese chips are still accelerating their development, which puts increasing pressure on American chips.

In the main market of Intel and AMD, the PC processor market, China now has domestic PC processors with multiple chip architectures, including ARM, RISC-V, loongarch, etc., and there are many options for domestic PC operating systems. It is expected that 50 million PCs will use pure domestic PCs in the future, which has led to the decline of American chip companies such as Intel in the PC industry.

As for NVIDIA and AMD, which have the advantage in the GPU chip market, are also facing competition from Chinese chips. In the past two years, many domestic GPU chip companies such as Moore Thread have emerged. After the United States stated that it would restrict NVIDIA and AMD from selling high-end GPU chips to China, NVIDIA said that this may cause it to suffer huge losses. The Chinese market contributed more than a quarter of its revenue to NVIDIA, and this may accelerate the upgrading of China's GPU chip technology. For this reason, NVIDIA urgently applied for an extension, and the United States also delayed the deadline to September 2023.

In addition, Chinese chips have also made breakthroughs in memory chips, analog chips, RF chips, etc., especially the rise of memory chip , which has led to a sharp drop in global memory chip prices. IC insights said that the global memory chip market size shrank by half from June to July this year alone, highlighting the cost advantages of Chinese chips.

It can be seen that the US's approach not only cannot hinder the development of China's chip industry, but has accelerated the breakthrough of China's chips, breaking the leading advantage of American chips in more industries, which in turn led to a recession in US chip performance. Under such circumstances, Intel, a leading American chip company, has seen a shrinking performance and has to lay off employees in large quantities. It is reasonable that more American chips will be in trouble in the future.

Now look at the achievements of Chinese chips over the past two years. Perhaps it can be said that the pressure exerted by the United States has become the driving force for the growth of Chinese chips, which has prompted the achievements made by Chinese chips in just over two years more than the past nearly 10 years. Perhaps the United States has regretted it at this time, right?