European chips warn, ** plummeted, China rose.
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Introduction. European integrated circuit industry giant ST recently announced its first-quarter profit warning, ** its revenue will fall by more than 15%, much slower than the previous **. The news once again raises concerns about the future of the global chip industry. ST is a European-based company, and its sales are also declining. This situation shows that the world chip industry may experience a deep reshuffle. ST is Europe's largest manufacturer of integrated circuits, with automotive, industrial, and consumer electronics customers. However, ST has shown a significant downward trend in recent years. In the last quarter of this year, Microsoft's revenue fell 32%, and earnings fell sharply by 20 from the same period last year5%。ST reported a profit warning of more than 5% in the first quarter. This shows that the future development of European chip giants is not going well.
ST's conundrum.
The decline in ST's profit was mainly due to the changing economic environment in China. According to statistics, revenue in the Asia-Pacific region reached 68% in 2021, and in the last quarter of 2022, this figure has reached 61%. In its latest earnings report, ST said that consumer orders continued to decline in the fourth quarter of last year, especially in the industrial sector. This situation is closely linked to the energy crisis that Europe is currently facing, as well as the decline in industrial capacity. In addition, ST's over-reliance on the Chinese market prevents it from benefiting from the growing growth of industries such as automotive and electronics in China.
In stark contrast, China's chip industry is still growing at a high rate. China's integrated circuit industry achieved 16The 5% increase in sales is far more than the world's 32%。This is despite a 11-year decline in chip sales in China1%, while during this period, its sales still increased by 8%. In addition, the domestic substitution rate of China's semiconductor industry is also increasing, and is expected to remain between 23% and 26% in the next few years. There are two reasons why China's semiconductor industry can develop rapidly. First of all, China has been increasing its investment in the production of integrated circuits; Second, because of the control of China by the United States, China must rely on its own products for development. At present, China's integrated circuit industry mainly relies on mature process technology, which allows it to quickly seize more markets. In the industry**, China's share of the mature process chip market will increase from 29% to 33% by 2027. At that point, Chinese chips will flood around the world, causing a fierce war.
The world chip map has been reshuffled.
With the rise of China, the integrated circuit giants of the United States, Japan, and South Korea are facing all kinds of difficulties. Look at Intel in the United States, it used to occupy the PCCPU for a long time, but in this era of mobile phone networks, it has lost the opportunity to develop, lagging behind other competitors, such as Nvidia, Qualcomm. Intel is trying to change that, but its future remains bleak. Japan's Toshiba (Toshiba) has withdrawn from the DRAM chip market, while Nippon Electric has also sold its chip industry to TSMC. All the changes show that the leading position of the traditional semiconductor power is gradually disappearing.
From a general point of view, China's integrated circuit industry is in a stage of rapid development, and its emergence will inevitably change the integrated circuit map of the whole world. Europe, Japan, South Korea and other European and American semiconductor companies are facing a strong blow, and if they do not adjust their market strategies in time, they will face greater losses. In the next few years, the world's integrated circuit industry will undergo a complete reshuffle, and Chinese companies will gain greater advantages. This is of great significance to the development of high-tech industries in China and the world.
Brief summary. ST, a European integrated circuit company, issued a profit warning, which is the current environment of changes in the world's chip industry. The decline in the company's performance is partly due to excessive reliance on the Chinese market, and on the other hand, it is also a signal of the growing Chinese integrated circuit industry. With the rapid development of China's semiconductor industry and the increasing independent research strength, the world semiconductor market has undergone tremendous changes. At a time when the traditional semiconductor countries are being impacted, relying on national support and independent innovation, Chinese enterprises have gained a huge competitive advantage. The rapid development of China's semiconductor industry will surely bring a great change to the world's integrated circuit industry. Foreign semiconductor companies need to make their own market positioning and strategic choices. In the next few years, the world's integrated circuit industry will usher in a "reshuffle", in which Chinese enterprises will gain more international competitiveness and have a major impact on China and the world's high-tech industries.
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