China's chip production capacity has been fully released, accounting for nearly 40% of the global share after three years
By 2023, China's chip production capacity will account for about 30% of the world's new industrialization, and 39% in 3 years, of which 8% are advanced process chips and 31% are advanced process chips. With the rapid growth of chip production capacity, chips will also enter the stage of coal price increases.
At present, dozens of chip factories under construction in China have all been put into operation, and it is expected that they can be fully put into operation within this year, and by 2023, China's chip production capacity will account for 29% of the global market, so our chip production capacity will exceed 30%, and by 2027, we will no longer have any illusions.
Such a large production capacity will inevitably lead to China's chips being unable to meet domestic demand and go to the international market, and China's chips can only go to the international market with low prices, which is also a killer feature made in China.
At that time, Made in China had already demonstrated its great strength in many fields. In the era of video recorders, China dominated the whole world with the most inexpensive video recorders, which became history. After Europe, Japan and South Korea tried to regain the market through advanced technology, but was soon occupied by China's low price, and finally Europe, Japan and South Korea jointly established a patent alliance to encircle and suppress China with high licensing fees. Subsequently, copycat machines, domestic smart phones, domestic video recorders, and televisions have all come out one after another.
It can be seen that the reason why Made in China has been able to achieve such great success is because its first-class strategy has played a key role; Of course, the low ** here does not refer to poor quality products, such as TVs, mobile phones, etc., these Chinese brand products, although cheap, but the quality is very good, and can even be compared with Samsung, LG and other industry bosses.
The same is true for the chip industry, although TSMC has advanced process technology, but analysis shows that in the global chip industry, the proportion of 7 nm or lower process is only 70%, so there are still opportunities for China's chip industry.
China has been able to mass-produce the 28 nm process, a few 14 nm processes have been close to the 7 nm process, and in three years, China can fully mass-produce the 7 nm process, and it will be easy for China to occupy more than 70% of the global chip market.
In recent years, China has made breakthroughs in the fields of memory, simulation, and automobiles, and has manufactured chips that meet the requirements of the industry, have advanced technology, and excellent performance, which has made Volkswagen and American home appliance manufacturers very satisfied with Chinese chips and actively adopted them.
A few days ago, it was reported that China's chip foundries are also seizing the foundry market with affordable **, such as Samsung, Lianhua and other foundries, whose prices have been reduced by more than 10%, and they still need to continue to reduce prices to demonstrate the strong competitive advantage of China's chip manufacturing industry.
In fact, China has adopted a similar approach to China's "manufacturing" in seizing the high-end chip market, that is, seizing the low-end chip market on a large scale, which has produced two effects. One of the impacts is that China's chip industry has gradually achieved technological upgrading through the large-scale occupation of the low-end market, with the accumulation of technology and capital, so as to obtain greater profits.
On the other hand, this will cause a decrease in revenue from the overseas chip industry, thereby slowing down the pace of China's chip technology upgrading and shortening the time for it to gain technological leadership. TSMC said that capital expenditure will be reduced this year due to the need for more investment in R&D of advanced processes, and the difficulty of R&D of advanced processes.
This two-pronged approach will help China accelerate the pace of catching up with foreign chips, and even catch up with foreign chips in time and space.
It is precisely because of the rapid development of Chinese chips that foreign countries have issued warnings, pointing out that the carbon price in chips will be, and foreign chip manufacturers who are accustomed to using chips are worried about this, because China's strategy is indeed effective, and they are of course worried that the chip industry will repeat the same mistakes.