In the current global chip war, China has become the focus. China's electronics industry manufactures behemoths, and the import volume of chips even exceeds the first, which emphasizes the urgency of independent and controllable chips. In order to achieve the goal of chip self-sufficiency rate and promote the development of the chip industry, China has adopted a series of preferential tax exemption policies. This has caused many companies to flock to the chip track and create a large number of newly registered chip-related enterprises. The data shows that in 2020, the number of newly registered chip companies reached 2280,000, a year-on-year increase of 195%. However, among these companies, there are also many "comprador" enterprises that cannot continue to operate, and they only enter the market to cater to the core-making boom or obtain subsidies. And in the face of the technology blockade and market pressure in the United States, they could not cope with the loss of technical support and R&D investment. Therefore, there is 1 in the near future090,000 chip enterprises were cancelled or revoked, an increase of 698%。Behind this figure is the unequal competition and market elimination in the chip industry.
The chip industry is one of the most important strategic industries in the field of science and technology in the world today. In the context of the global chip war, China's dependence on chips, as a huge electronics manufacturing country, is particularly important. In fact, China's annual import of chips even exceeds the demand for **, which is not only huge, but also shows that China has huge challenges in chip independent innovation and industrial development.
In order to break the dependence on chips, China** has adopted a series of preferential tax exemption policies to attract domestic enterprises to enter the chip field. Driven by this policy, many start-ups have quickly poured into the chip track, and the number of newly registered chip-related companies has also shown a rapid growth trend. According to statistics, in 2020 alone, the number of newly registered chip companies reached 2280,000, a year-on-year increase of 195%. This figure reflects the "first period" of the development of China's chip industry.
However, among these enterprises, there are also some "comprador" enterprises that are just trying to take advantage of the chip boom to obtain subsidies. In the face of technology blockade and market pressure in the United States, these companies are often unable to withstand the impact of losing technical support and R&D investment, and are forced to withdraw from the market. Recent data shows that as of December 11, 2023, there have been 1090,000 chip-related enterprises were cancelled or revoked in the industrial and commercial departments, an increase of 69 percent over last year8%。This number is increasing every day, with an average of 30 chip companies being cancelled or revoked every day.
The increase behind this data reflects the fierce competition in the chip industry and the imbalance of the market. First of all, the entry of comprador enterprises is an important reason. Due to the strong support for the chip industry, some companies have entered the chip track in order to cater to the core boom and obtain subsidies, but they lack real technology accumulation and long-term development planning. In the face of technological blockades and market challenges, these companies are often unable to cope and can only choose to exit the market.
Secondly, market competition is also one of the important reasons for the withdrawal of a large number of chip companies. Although China's fabs have expanded their production capacity, they are mainly focused on mature processes and low-end chips. In the field of high-end chips, China's achievements are not enough. Therefore, there has been overcapacity in the field of mature process chips, and the industry competition is very fierce. According to the China Semiconductor Association, there are 3,243 chip design companies in China, of which 55% have a revenue of less than 10 million yuan. Among the semiconductor companies listed in China, 30% are loss-making and 70% are profitable, but 74% of the company's net profit has declined. This phenomenon shows that the fierce market competition has intensified the involution phenomenon of the chip industry, and it is difficult for small-scale enterprises to compete with large enterprises in terms of technology, talent and R&D investment, and they are forced to withdraw from the market.
The entry of comprador enterprises is one of the main reasons for the large number of chip companies to withdraw. With the strong support of the chip industry, some companies have poured into the chip industry in order to cater to the core boom and obtain subsidies, rather than out of real technical strength and long-term development considerations. However, when these companies encounter technical barriers and market challenges, they do not have enough strength to deal with them, so they have to choose to withdraw from the market. Their short-sighted behavior not only makes it unsustainable, but also poses a risk of imbalance and instability in the entire chip industry.
On the other hand, the fierce competition in the market is also one of the important reasons for the withdrawal of a large number of chip companies. Although China's fabs have vigorously expanded production in terms of mature processes, their achievements in the field of high-end chips are still limited. This has led to overcapacity in mature process chips, intensified market competition, and involution within the industry. According to the data of the China Semiconductor Association, there are 3,243 chip design companies in China, of which 55% have a revenue of less than 10 million yuan. 3. Outlook for China's chip industry.
Despite some problems and difficulties, the outlook for China's chip industry remains optimistic. First of all, China has a huge market and sufficient R&D funds, coupled with the strong support of the world, which provides a broad space and opportunities for the development of the chip industry. Secondly, China has made certain breakthroughs in some fields, such as Huawei's domestic substitution of mid-to-high-end chips, OFILM and Goertek's reversal against the trend, and Loongson's breaking of Intel and AMD's monopoly in the PC processor market. These successful cases show that China's chip industry has great potential in technological innovation and market competition.
Of course, in the face of the fiercely competitive global chip market, China's chip industry needs to pay more attention to technological innovation and industrial upgrading. It is very necessary to guide and standardize comprador enterprises, optimize the ecological environment of the chip industry, and strengthen personnel training. At the same time, cooperation and exchanges with international leading enterprises are also an important way to promote the development of China's chip industry.
To sum up, although China's chip industry has seen an influx of start-ups and faced some problems and challenges in the past few years, this is not a bad thing for the industry as a whole. The reshuffle and elimination of the market will make the competition within the industry more intense, and the process of survival of the fittest will also accelerate the overall progress of the industry. At the same time, China's chip industry still has huge development potential and resilience, and I believe that with the joint efforts of all parties, the future of China's chips will be bright.
Despite the problems and challenges in China's chip industry, the outlook is still relatively optimistic for the entire Chinese chip industry. China has a huge market scale and abundant scientific and technological talent resources, and has also given huge policy support and investment to the chip industry. This provides broad development opportunities and space for China's chip industry.
First of all, the Chinese market is huge, and the demand for chips is urgent. China is the world's largest producer and consumer of electronic products, and there is a huge demand for chips. This provides a broad market space for Chinese chip companies, which is conducive to the long-term development of enterprises.
Second, China has made certain breakthroughs and achievements in some fields. For example, in the field of mid-to-high-end chips, Huawei has achieved the replacement of domestic chips, and has achieved a certain market share and international influence. At the same time, some Chinese companies have turned around in the contrarian trend and achieved certain competitive advantages. These successful cases show that China's chip industry has certain strength and potential in technological innovation and market competition.
However, in the global chip market, China's chip industry still faces some difficulties and challenges. The excessive entry of comprador enterprises has led to uneven market competition, and there are some unstable factors within the industry. In addition, compared with international leading enterprises, there is still a certain gap in China's chip industry in terms of technology research and development, industrial upgrading, etc. Therefore, China's chip industry needs to increase technological innovation, strengthen international cooperation, optimize the industrial ecological environment, and improve the level of talent training to enhance the competitiveness and development level of the entire industry.
In conclusion, although China's chip industry has seen an influx of start-ups and faced some problems and challenges in the past few years, this is not a bad thing for the industry as a whole. The reshuffle and elimination of the market will make the competition within the industry more intense, and the process of survival of the fittest will also accelerate the overall progress of the industry. At the same time, China's chip industry still has huge development potential and resilience, and I believe that with the joint efforts of all parties, the future of China's chips will be bright.