These chips involve mature process processes and can be produced domestically. As consumer electronics demand declined, Chinese companies cut orders of 43 billion chips, but exported 160 billion chips.

chips have a wide range of applications, and a mid-to-high-end smartphone requires at least hundreds of chips. In addition, the common routers, TVs, refrigerators, etc. at home also require a large number of chips.

These chips involve mature process technology and can be produced in China. As consumer electronics demand declined, Chinese companies cut orders of 43 billion chips, but exported 160 billion chips. Why does such import and export data appear in

? Are US companies anxious when Chinese companies reduce their chip imports?

Conversion of chip supply and demand relationship

China is a major chip consumer country, with a population of 1.4 billion consumes hundreds of billions of chips every year. From remote controls to automobiles, as long as they are electronic devices, they need to use chips. The more chips consume, the larger the market size and the more capital it becomes.

Taking smartphones as an example, there are hundreds of chips involved, and most of them are mainly high-end processes. Behind this, the industrial chain with a output value of 100 billion US dollars is connected. Top EUV lithography machines, etching machines, photoresist materials, etc. are almost all serving high-end mobile phone chips .

After all, so far, except for consumer electronic products such as smartphones, chip processes of 7nm, 5nm and below are rarely used.

American companies control the high-end chip market, Qualcomm Snapdragon chips are selling well in China, and Apple 's self-developed A-series processors have also risen with the popularity of iPhones. These consumer electronic chip suppliers can make a fortune in China every year, and hand over impressive financial report data to shareholders and investors.

However, the situation has changed, smartphone consumption demand has declined, and the inventory of major mobile phone manufacturers has increased. Due to the fact that manufacturers have stockpiled a lot of chips in the context of chip shortage, these chips became stock products when demand declined. If the old stock cannot be sold, there is no need to buy new ones.

Therefore, from January to July this year, Chinese companies cut orders of 43 billion chips, a year-on-year decrease of 11.8%.

order cut shows that there is no longer a strong demand for a certain type of chip. In connection with the decline in smartphone shipments, it can be guessed that the types of chips that have been reduced include mobile terminal SOCs, RF chips, Bluetooth chips, screen driver IC chips, etc.

The market share of these chips has always been in the hands of American companies. If nothing unexpected happens, order cutting will bring greater variables to the revenue growth of American companies.

In addition to reducing chip imports, China is increasing its export quota to chips. Data shows that from January to July this year, mainland China exported 160 billion chips, while the number of chips produced in China reached 190 billion.

It is not difficult to see from these data that the chip supply and demand relationship has been transformed, from imported chips to self-production and self-selling to meet domestic demand, and even from import to export, exporting some chips with large demand, independent and controllable production capacity to achieve corresponding export volume growth.

High-end chip export market may be in the hands of American companies, but it involves automotive chips, Internet of Things chips, AI chips and other products, and it is not only the United States that can produce and manufacture them. China has a rich and huge chip industry chain, with participants in every upstream and downstream link. Exporting within the scope of production and supply will help enhance the economic growth of all markets. Are US companies anxious to reduce chip imports?

For a long time, China has played the role of "consumer" in the global chip industry chain. Various countries and regions sell chips to the Chinese market and then earn huge revenue and profits.

Especially in the United States, American chip companies entering the Chinese market have basically achieved positive year-on-year growth in revenue data. If it weren’t for the US rules that undermine chip globalization, American companies might have benefited more. From the perspective of consumers, you can also get the desired product, and both parties have a mutually beneficial relationship.

But the United States wants to always control consumers' business, so it uses unconventional competitive means to restrict supplier shipments.When it reaches a certain level, American companies will be allowed to obtain shipment licenses, and suppliers from other countries and regions will not be able to obtain this part of the order.

What the United States did not expect was that "consumers" no longer had urgent consumer demand, and chips related to smartphones were facing large-scale order cuts. The high-end chips that American companies worked hard to produce were probably not going to be sold.

Are US companies anxious in the face of the situation where Chinese companies reduce chip imports? The answer is yes. Micron Technology is already cleaning up inventory, Nvidia is also selling graphics cards at prices lower than the market, and Qualcomm is even transforming into the server chip market to reduce its dependence on mobile phone chips.

These phenomena all show that the United States does not grasp the cooperative relationship with the consumer market, and will sooner or later experience the consequences of its own suffering.

Some foreign media also said that no wonder ASML has changed. ASML was arrogant at the beginning of the Chinese market, believing that even if it provides drawings, it would not be able to create a top-level lithography machine .

But now ASML shows goodwill to China. In order to win the Chinese market, it would rather stand against the opposite side of the rules and even set "China Day" for Chinese employees. Chinese employees can enjoy additional holidays on September 1st every year.

It can be seen that ASML is adapting to the needs of the Chinese market and increasing its layout in the Chinese market. Because ASML understands that China will reduce its dependence on American companies' chips and turn to self-produced and sold.

If ASML can seize the opportunity, it is probably not difficult to win a large number of lithography machine orders. With such a market prospect, no wonder ASML's attitude has changed.

was written at the end

Chinese companies are converting chip supply and demand relationships, changing from import to self-production and self-sales, and even turning additional chips to export. China Enterprise chips have been exported, and American companies' chips are probably not easy to sell. Perhaps the United States should reflect on what kind of ending everything it does will bring to American companies.

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