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In recent years, the European chip giant STMicroelectronics has faced huge challenges. The company's revenue is expected to fall by more than 15% in the first quarter, significantly below market expectations, as automotive demand weakens and orders from the industrial sector decline. And this isn't the first time ST has had problems, with both revenue and profit declining significantly in the fourth quarter of last year. As the largest chip company in Europe, the company's main customers are automotive and industrial fields, of which automotive chips account for a considerable proportion of revenue.
So why can't STMicroelectronics bear it? One of the reasons may be related to the Chinese market. According to the data, ST's revenue in the Asia-Pacific region accounted for 68%, but it fell to 61% in the fourth quarter of 2022. This means that revenue in the Asia-Pacific region has declined, which may be one of the reasons for ST's sluggish growth. In addition, the company said in its fourth-quarter 2023 earnings report that customer orders were down compared to the third quarter, while demand for industrial products deteriorated further. Some analysts also mentioned that the energy crisis in Europe and the decline in industrial capacity may also be one of the important reasons for ST's problems. At the same time, China's chip industry is on the rise.
China's chip industry is showing a trend of rapid development in recent years. Especially from April 2023, China's chip production has achieved an astonishing growth for 5 consecutive months, and the growth rate in August reached 211%。Judging from the data of the past few years, the growth trend of China's chip industry is more obvious. In 2022, global chip sales will increase by 3% year-on-year2%, while the sales growth of China's chip industry is as high as 165%。At the same time, according to the report of the internationally renowned institution Tyco Yingsai, China's chip self-sufficiency rate continues to increase. In 2020, China's chip self-sufficiency rate was about 166%, while 2023 is expected to reach 233%。This growth is likely to be even faster in the coming years.
The rise of China's chip industry stands in stark contrast to the downturn in the United States and other Western chip giants. Due to the restrictive policies of the United States and the West and the strong competitiveness of Chinese chip companies, chip giants in the United States and the West are losing a large market share. On the contrary, Chinese chip companies are on the rise. Experts at international market research firm TrendForce warn that China is dramatically expanding its chip manufacturing capacity, allowing China to quickly capture the global chip market. This may lead to an oversupply of capacity, which will reduce the ** of wafer foundries, some companies may go bankrupt, and the global chip industry will face a reshuffle. According to TrendForce**, the production capacity of mature processes in China is expected to grow from 29% to 33% by 2027, and these chips will flood the global market in large numbers, which may trigger a global chip war.
Based on the above data and trends, it can be seen that China's chip industry is ushering in huge opportunities and potential. As the world's largest consumer market, China not only has a huge demand for chips, but also has a huge manufacturing capacity. The continuous improvement of China's chip self-sufficiency rate has also strengthened the competitiveness of China's chip industry in the global market. However, in this highly competitive global chip market, China's chip industry also faces some challenges, such as technological innovation capabilities, intellectual property protection, etc. Therefore, China's chip industry needs to further strengthen its independent research and development capabilities, improve its technical level, and do a good job in product quality control and marketing to ensure a larger share and competitive advantage in the global chip market.
China's chip industry is on the rise, while chip giants in the United States, Japan, South Korea and Europe are facing difficulties. China's chip production and sales are increasing year by year, and its self-sufficiency rate is also increasing. At the same time, China's capabilities in chip manufacturing are expanding, allowing China to rise rapidly in the global chip market. Although China's chip industry is facing some challenges, with the growth of the Chinese market and the continuous improvement of technology, China's chip industry has huge development potential and opportunities. In the next few years, China's chip industry will continue to strive to improve its competitiveness, further expand its market share, and become one of the leaders in the global chip industry.
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