China's Huawei announced that it had canceled $97 billion worth of chip orders, a move that sent panic among the American giants. In the past, American chip giants such as Qualcomm, Intel, and Nvidia were able to earn $15 billion in profits in the Chinese market every month, however, as Chinese technology companies (especially Huawei) accelerate their breakthrough of technical barriers, American giants can only gradually lose profits. Huawei's domestically produced Kirin 9000s chip has broken the situation of easy money for companies such as Qualcomm. In the face of U.S. sanctions on Chinese chips, Huawei not only spent a lot of money to accelerate independent research and development, but also abandoned the overseas mobile phone market and was forced to part ways with Honor. However, this dilemma did not defeat Huawei, but inspired their determination to speed up domestic chips. Huawei even took Apple as a competitor and invested $23.8 billion in research and development to complete the domestic substitution of 13,000 components and 4,000 circuit boards, reshaping its hegemony. In the face of the resistance of the American Chip Alliance, Huawei only spent three years and a large amount of R&D funds to solve all the problems in the design, manufacturing and launch of the Kirin 9000S chip. The efforts of China's local chip companies have achieved great results in the Chinese market, and it can be seen from customs data that the number of imported chips in China has decreased by 97 billion in 2022, a year-on-year decrease of 15%. It is expected that the number of chips reduced in China will exceed 100 billion this year. The American chip giants are already complaining, realizing that the good old days are over. Qualcomm warned that if the United States does not release the shipment license of 5G chips, they will face a loss of more than 200 billion yuan per year. Intel also announced that if the Chinese market is closed, it makes no sense for them to build a factory in the United States. Although the U.S. sanctions on Chinese chips seem to protect the interests of U.S. chip companies, they are only broken through the blockade by China's Huawei and other companies, and the U.S. chip giants have become "victims".
As mentioned in the original article, Huawei has burned up R&D funds to accelerate the research and development of domestically developed Kirin 9000S chips. It is worth mentioning that this chip shocked US Secretary of Commerce Raimondo after its launch. Huawei only spent 3 years and a large amount of R&D funds to solve all the problems of design, manufacturing, and launch of the Kirin 9000s, breaking the monopoly of American chip giants on China's chip market in one fell swoop. The success of Huawei's independent R&D has not only enabled China to make breakthroughs in the field of chips, but also made China stand out in the global competition of scientific and technological innovation.
According to data from China Customs, the number of chips imported by China will decrease by 97 billion in 2022, a year-on-year decrease of 15%. It is expected that the number of chips will exceed 100 billion this year, which shows that China's chip enterprises have developed rapidly and made great achievements. And the American chip giants have to face challenges from China's local chip companies, and they have begun to worry and complain. Qualcomm warned that if the United States does not release the shipment license of 5G chips, they will lose more than 200 billion yuan per year. Intel also made it clear that if the Chinese market is closed, there is no point in building a factory in the United States. The rise of China's chip market is not only an impact on the U.S. chip industry, but also provides strong support for China's independent innovation in science and technology.
Although the United States imposed chip sanctions on Chinese Huawei and other companies in an attempt to protect the interests of its own chip industry, this approach ultimately failed. Huawei not only withstood the pressure of sanctions, but also accelerated the localization process of chips. In just a few years, Huawei's independently developed Kirin 9000S chip has achieved great success. This shows that Chinese chip companies have the ability to innovate independently and independently, and no longer rely on foreign companies. The chip giants in the United States have become "victims" of sanctions, while China's chip industry is growing.
Although Huawei faced many difficulties, such as being forced to abandon the overseas mobile phone market and the separation of Honor, this did not break Huawei's determination and fighting spirit. On the contrary, Huawei has more firmly accelerated the pace of research and development of domestic chips in the face of difficulties. Huawei has taken Apple as a competitor, invested huge amounts of R&D funds, and successfully completed the domestic substitution of a large number of components and circuit boards. Huawei's successful experience shows that only through independent innovation and independent R&D can Chinese enterprises remain invincible in the global technology competition. The challenges facing Huawei are also opportunities, and only by continuously innovating on this basis can it stand out from the fierce international competition.
The rise of China's chip industry has had a huge impact on the global technology industry, especially Huawei's domestic chips have made important breakthroughs. From the news of the cancellation of the $97 billion chip order, it can be seen that the strength of Chinese chip companies is increasing day by day. Although facing sanctions and resistance from the United States and other countries, Huawei has successfully independently developed the Kirin 9000S chip with its strong R&D strength and independent innovation capabilities. For Chinese technology companies, independent innovation and independent research and development are the key to long-term development. In the global competition in science and technology, China has stood at a new starting point and is moving towards the goal of becoming a scientific and technological power. In the face of future challenges and opportunities, China's chip industry still needs to make continuous efforts to promote the take-off of China's science and technology driven by continuous innovation.