China has begun to set the goal of chip self-sufficiency. The United States wants to control chip sales channels, but it does not realize that China will build its own chips, and the demand for the United States will continue to decline.
From January to July this year, Chinese companies cut orders of 43 billion chip imports. This is the best proof. Another key data is released. China's R&D funding last year reached 2.8 trillion yuan. What does this mean? China is accelerating chip manufacturing, can American chips still sell?
Reasons for chip order cuts
The United States has begun to revitalize its chip manufacturing industry, using a subsidy of $52 billion to attract chip manufacturers to invest and build factories in the United States. In the early stages, it did prompt many investment plans. But the chips produced are always sold, and the United States cannot consume all chip production capacity.
The United States must seek a huge market. China has a population of 1.4 billion and spends US$300 billion to import chips every year. The sales market size formed ranks first in the world. Therefore, the most fundamental market place for chip manufacturing in the United States is actually In China.
Take Qualcomm for example. Snapdragon processors can only be sold well in the Chinese market. Other countries basically have no independent mobile phone brands, and even if there is one, it is impossible to support Qualcomm's chip sales growth.
However, since the beginning of this year, domestic demand for smartphones has declined, and Qualcomm's chip shipments have also plummeted. Without demand, there will be fewer imported chips. From January to July, the number of domestic chip imports was 324.67 billion, a year-on-year decrease of 11.8%, equivalent to 43 billion chips cut orders. There are only two reasons for
to cut orders. One is that demand has declined and there is no urgent need for import. The other is to form self-sufficiency, and some chips can be produced domestically and do not need to be imported. Both of these situations are the main reasons for the 43 billion chips being cut. The decline in demand is obvious to all. So what are the performances in self-sufficiency?
my country has set a 70% chip self-sufficiency target. Although high-end chips are temporarily out of reach, most of the domestic chip demand is concentrated on mature processes. This part of the chips can be produced domestically or relied on the domestic supply chain. Complete manufacturing. Therefore, as long as the production capacity of mature processes is strengthened, it can be further away from the chip self-sufficiency target of 70%.
key data is released, which is related to the research and development of
However, in order to promote the goal of 70% chip self-sufficiency, in addition to improving production capacity, some necessary core technical barriers must also be overcome. Only by forming a more solid R&D foundation can we support the growing output value of the chip manufacturing industry.
chip order cut is just the beginning, and more autonomous power has emerged. In this regard, a key data was released. According to the data from the National Bureau of Statistics, my country's R&D funding in 2021 was 2.8 trillion yuan, an increase of 14.6% year-on-year. Such R&D funding ranks second in the world, and has maintained double-digit growth for six consecutive years.
These R&D funds flow into various important industries, including chip manufacturing, electronic equipment, basic scientific research, etc.
In addition, the enterprise level has also invested in high research and development. According to the R&D investment of the top 500 Chinese enterprises in in 2022, the total number reached 1447.467 billion yuan, accounting for 51.95% of the total R&D investment in 2021. The most popular one is undoubtedly Huawei . Last year, the R&D investment reached 142.6 billion yuan, and Alibaba ranked second, with R&D investment of 57.8 billion yuan.
High R&D investment represents an enterprise. The society attaches importance to certain fields, and the efforts and returns are proportional to the returns. The more R&D is, the deeper the accumulation is, the greater the future returns.
The United States' R&D investment has remained the world's first place for many years, and there is a reason why it can lead in the industry such as chips, operating systems, and the Internet. If you want to catch up, spending money is a must. Spend money where it should be spent, concentrate resources to break through core technologies, and form independent and controllable industrial advantages.
Can American chips still be sold?
Last year, my country invested 2.8 trillion yuan in R&D funds. What does it mean? In fact, it means that innovation breakthrough results will be formed in more technology industries. In the chip field, " China Chip " will surely rise. Starting from mature processes and controllable production capacity, and continuously improving self-sufficiency rates, then when foreign chips are in a hurry to be sold, the right to speak will no longer be in the hands of the opponent.
The United States wants to build its own chips and want to take the chip sales business into its hands. Therefore, TSMC was asked to build a factory in the United States and also provided huge subsidies to attract investment in building a factory. I wonder if the United States has ever thought about who to sell the chips they made? If it is sold to Europe, there will be no corresponding customers in European countries and regions to bear the demand for high-end chips, because Europe mainly focuses on the development of industrial manufacturing.
In Asia, South Korea can build its own high-end chips. Japan does not have enough consumer markets, and only the Chinese market can consume these chips.
Unless the United States does not plan to sell chips, and just wants to keep the chips for use on its own, there is nothing to say. Otherwise, the US restriction on chip sales will definitely prompt China's chips to become self-sufficiency, and American chips will not be sold at that time. Even if you sell at a price cut, it depends on whether the market wants it.
written at the end
chip consumer market and supply market are mutually beneficial. If the consumer market forms the ability to produce and sell itself, the upstream supply market may not be able to transform into the consumer market. Therefore, the United States should recognize the importance of the Chinese market. Maintaining open cooperation is the most important thing, so don’t make any mistakes.
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