**War escalation: Taiwan's four major chip factories cut prices to compete for Chinese orders.
Taiwan's four major chip manufacturers have expanded their production bases in Chinese mainland and voluntarily cut prices by 10%-20%, indicating that Taiwanese chip manufacturers have realized that only Chinese mainland manufacturers can provide more chip orders in the market.
TSMC is expanding its 28 nm process capacity and Xiamen 28 nm process at its Nanjing plant in China, while PSMC, the world's top power semiconductor manufacturer, is also making a big push into Chinese mainland, showing their high expectations for the Chinese mainland market.
The price reduction, is led by Samsung, due to the global chip ** excessive, Samsung in order to seize market share, automatically reduced the production cost of one percent, after Samsung's price cut, Taiwan's three major chip foundry United Microelectronics, and the world's leading SMIC also followed, have cut prices by 10%-20%.
Because China's current demand for chips is very large, they have reduced their ** to attract Chinese customers, while China's semiconductor manufacturers have been trying to reduce production, while China's chip manufacturers still occupy 90% of the output, and they are eager for Chinese products.
And the reason why those chip manufacturers will grab China's chips is because they realize that the chip market in the United States is not as smart as before, because the competition in the chip market in the United States is too fierce, resulting in fewer and fewer chip orders in the United States.
Starting from the fourth quarter of 2022, Intel, Micron Semiconductor and other American companies have announced their financial reports one after another, and the revenue of companies such as Nvidia, AMD and Qualcomm has fallen sharply, and the semiconductor industry in the United States has also fallen into trouble.
This is especially prominent in the field of mobile ** chips, because the United States' dependence on Chinese mobile devices has led to a significant decline in the share of products using Qualcomm in mobile devices, which makes Qualcomm lose its advantage in mobile devices;With the continuous improvement of China Mobile's market share of MediaTek, MediaTek has been the world's largest mobile chip manufacturer since 2020 for three years.
In addition to the mobile** industry, many industries in China are gradually scaling back their chip purchases in the United States, which is expected to shrink by 97 billion chips in 2022, due to the reduction of Chinese chips, which have hit the United States hard, while the demand for American chips continues to decline, as the latter has a market share of nearly 50%.
With China's large purchase of American chips, as well as strong support for local products, the rapid development of China's integrated circuit industry, so that its demand for integrated circuits has increased rapidly, the world's top 20 growth semiconductor companies, 19 for China, in the face of the current large number of surplus Chinese Taiwan wafer manufacturers, also aware of the importance of China, have reduced the first, in order to strive for more customers.
China's chip industry is also booming, China's largest chip manufacturer SMIC, is currently stepping up investment in expanding chip factories, mass production of chips is rising exponentially, and China's chip manufacturers are also well aware that only self-developed chips are the most trustworthy, China's chips, will inevitably affect the entire world's chip market because of China's huge market.