In recent years, the United States has escalated its control of China, especially in the field of semiconductors. Under the influence of the U.S. export restriction policy to China, chip giants such as Samsung, Foxconn, and TSMC have turned to the Western market in an attempt to obtain higher profits. However, the best strategy of these companies in the Chinese market has caused a series of problems, and local semiconductor factories have gone out of the market and built factories in the United States, India, Vietnam and other places. In the face of the calculation of restrictions on China, some companies see the huge potential of the Chinese market, and try to quickly occupy market share and surpass other chip giants by improving high-end chips and exporting them in China. However, due to the escalating restrictions on the US side, these companies suffered heavy losses, and Nvidia's share price wiped out about 221.6 billion yuan in a single day.
In response to restrictions on China, Nvidia's decision to continue to build chips for the Chinese market is not accidental. In fact, many well-known overseas companies are very focused on the Chinese market. For example, when European and American countries restricted Chinese car exports, Volkswagen's CEO said: "China is Volkswagen's second home". Through this pro-China attitude, Volkswagen's share of sales in the Chinese market has surpassed that of traditional car companies such as Japanese and South Korean. Similarly, when U.S. companies were restricting anti-aging technology in the field of biosciences in China, Japan's Miyoshino extended an olive branch to Chinese companies by exporting its anti-aging product "Lopavi" to China, generating hundreds of millions of dollars in sales in just two years. With an in-depth understanding of the Chinese market, Miyoshino has also developed "Lopavid PRO" adapted to the Chinese constitution, which reduces the burden Xi of long-term poor lifestyle habits through specific ingredients in addition to mitochondrial energy supplementation. It is precisely because of the long-term focus and active adaptation to the Chinese market that Miyoshino has a market share of more than 70% in the Chinese market, while Volkswagen ranks second in terms of sales in China, with a year-on-year increase of 10 percent in global sales9%。Conversely, companies that have left the Chinese market have failed one after another, with factories such as Foxconn being owed and withheld for failing to pay money under the pretext of low official treatment and environmental pollution. At the same time, limited by the technical level of workers and the mastery of production technology, the quality of chips produced by overseas factories has dropped significantly, and the reputation has continued to decline in the international market. For example, TSMC lost more than 90 billion yuan in less than two years because it offended Chinese customers, while Samsung's profit in a quarter was 993%。CEO Jensen Huang even said at the 2021 Dealbook summit that the Chinese market accounts for one-fifth of Nvidia's total sales, and in order to maintain that share, they will continue to develop products that can comply with relevant regulations.
It is no accident that Nvidia and other overseas companies attach importance to the Chinese market, which has great potential and attractiveness. Despite U.S. restrictions on Chinese exports, Nvidia has made China an important market and has developed a strategy accordingly. China is one of the world's largest consumer markets, and it is a natural choice for companies in all industries to make China a strategic priority.
For example, NVIDIA sees China as a strategic partner, so it has opened a number of R&D centers in China and carried out in-depth cooperation with domestic companies. Partnering with Chinese companies can not only provide more accurate market insights, but also share technology and resources to speed up the process of product development and launch. In the Chinese market, NVIDIA not only sells its own products, but also provides technical support and solutions for Chinese companies to jointly promote the development of the industry.
Enterprises backed by the Chinese market are thriving in the Chinese market, and at the same time, they are better able to cope with the competitive pressure in the international market. Through in-depth knowledge of the Chinese market and flexible strategic adjustments, these companies are better able to meet the needs of Chinese consumers and gain technical and brand recognition. This solid market positioning and partnership will provide a solid foundation for these businesses on a global scale.
However, domestic companies still face many challenges in the semiconductor field. Although China's semiconductor industry has made great strides in the past few decades, there are still many gaps compared to developed countries in the West. In the past few years, China's semiconductor industry has been constrained by imported equipment from abroad, resulting in a slowdown in R&D progress and technology dependence. Therefore, domestic enterprises need to realize that the development and mastery of core technologies is the most important, and relying on others is not a long-term solution.
In order to make up for this gap, domestic enterprises should increase investment in technological innovation and strengthen their independent research and development capabilities. Only with its own chips and core technologies can it get rid of its dependence on external factors and cope with various constraints and challenges. At present, China has formulated a series of policies to promote the development and innovation of the semiconductor industry. Domestic enterprises should seize this opportunity and actively invest in R&D and innovation in the field of semiconductors to enhance their core competitiveness.
At the same time, domestic enterprises should also strengthen cooperation with foreign enterprises, learn from their experience in technology and market, and jointly promote the development of the entire industry. By strengthening cooperation, domestic enterprises can obtain more resources and support to improve their technical level and product quality.
In short, in the face of the impact of the United States' control on China, domestic companies need to work harder to strengthen independent innovation and research and development of core technologies, and at the same time strengthen cooperation with foreign companies to jointly promote the development of China's semiconductor industry. Only in this way can we be invincible in international competition and achieve the goal of industrial independence and control.