The cancellation of the 96 billion chip order, the Chinese company officially announced, and the for

Mondo Technology Updated on 2024-01-31

Recently, a striking piece of news shines in the global technology industry: Chinese companies have officially announced the cancellation of 96 billion chip orders. The news came as a surprise to many, as the United States has long dominated the global semiconductor market. However, China's chip self-sufficiency rate is gradually increasing, and 97 billion chip orders have been canceled last year. Foreign media have commented that in this "chip war", China is gradually grasping the initiative.

Over the past few years, U.S. chip companies have amassed wealth with their ability to sell chips. In particular, the rapid development of the artificial intelligence industry has brought a large number of AI chip orders to companies such as Nvidia, making them make a lot of money. According to a report released by CounterpointResearch, the top three companies in the world in terms of semiconductor revenue are Nvidia, Intel and Samsung. Among the top 10 semiconductor companies, American and South Korean companies account for the vast majority of the share, while Chinese companies have only one place.

However, the chip ban in the United States has created uncertainty for this landscape. According to the ban, only licensed merchants can continue to supply to certain Chinese companies. However, to date, only a few companies have obtained licenses, and the scope of supply is very limited. Especially for companies like NVIDIA, many high-end AI chips have been restricted by unauthorized modification of rules, resulting in their inability to ship normally.

While facing the US ban, Chinese companies have also strengthened their determination to independently develop chips and continuously improve their chip self-sufficiency rate. Last year, China's integrated circuits have reduced orders for 97 billion chips, and in the first half of this year, another 516 chip orders were canceled. It is estimated that by 2023, the number of canceled chip orders may exceed 100 billion. Most of these orders come from U.S. companies, so their earnings may no longer be able to deliver a stellar report card.

In order to maintain its leading position in the chip field, the United States does not hesitate to undermine the globalization of chips, and it does not care about the losses that American companies may suffer as a result. Although most U.S. companies still dominate the market, their performance is generally declining according to the financial report data. Intel, for example, saw its third-quarter revenue fall 8% year-on-year, while Qualcomm fell 23%.

This is just a few examples, as Chinese companies continue to accelerate the independent research and development of chips, foreign media have said that American chip giants are facing unprecedented challenges. For example, Huawei has successfully launched its self-developed chip Kirin 9000s, and it is expected that by 2024, Qualcomm will lose a large number of Huawei chip orders. In addition, Qualcomm will also lose more orders from mobile phone manufacturers due to the decline in shipments due to competition among other mobile phone manufacturers.

In the PC field, the Loongson 3A6000 independently developed by the Chinese Academy of Sciences has also made a huge breakthrough. Not only can this chip meet most of life's needs, but it is also comparable to Intel Core 10th generation processors. Chinese companies are becoming more determined to develop their own products, so American companies are also aware that long-term non-shipments will lead to alternative options in the market. Nvidia is also speeding up the research and development of special version of the chip, hoping to obtain the shipping license of the United States. However, as the old saying goes, the more restrictions there are, the stronger the determination of Chinese companies to develop their own R&D.

Chinese companies have seized the opportunity of independent research and development of chips and have made great progress. Not only in the field of 5G, but also the capabilities of Chinese chips are gradually becoming stronger. Since the advent of Huawei's Kirin chip, its performance and stability have been recognized by users around the world. In addition, Chinese companies are also going further and further on the road of pursuing independent research and development, not only making breakthroughs in the field of mobile phone chips, but also getting involved in smart wearables, Internet of Things and other fields.

The rise of Chinese chips has not only shocked the global industry, but also had a huge impact on the world's technology landscape. As the world's largest consumer electronics market, the Chinese market has a huge demand for chips, and Chinese companies are relying on self-developed chips to meet this huge demand. With the continuous progress and accumulation of technology, Chinese chips are expected to further occupy an important position in the global market.

The road to China's chip self-development is not an easy task, but Chinese companies are promoting the rise of the domestic chip industry step by step with firm determination and continuous climbing technological peaks. The cancellation of the 96 billion chip order is just the beginning, and Chinese companies have made great strides in independent innovation, technological breakthroughs and market expansion. Despite the challenges, the future of China's chips is full of hope and will surely bring new changes to the global development of science and technology.

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