The opportunity for China's chip outbreak is coming, and the chip industry has completed a cycle, which lasted 3 and a half years!
When was the last price increase? To be exact, this happened in the second half of 2020, when the price of chips around the world, especially in automobiles, increased.
CPU, GPU, NPU, DRAM, NAND Flash, wafers, endless price increases have spread in the chip industry, and even the surrounding chips are in short supply.
In this context, large manufacturing companies such as TSMC, Samsung, SMIC in Chinese mainland, Huahong, and Jinghe are steadily increasing production capacity.
After that, due to the gradual increase in chip production, the gradual decline in demand, and the impact of the flu, the chip in 2022 will decelerate again, resulting in the weakness of mobile sales, as well as the decline in sales of electronic and digital goods, and the increase in chips.
From 2022 to 2023, the price reduction of chips will be the largest, especially in 2023, the price of DRAM and NAND flash memory chips has increased by 50%, and Samsung, SK hynix, Micron and other companies have been affected. So the losses are huge, and the three major memory companies will lose more than 1,500 yuan throughout 2022.
Therefore, before 2023, wafer manufacturers will consider significant price cuts, production cuts, and production cuts to maintain selling prices.
This approach has proven to work, and according to TechInsights, the chip industry will be sold at a higher price from the end of 2023 to the beginning of 2024, and at the beginning of 2024, the semiconductor industry will continue to grow.
Similar to DRAM, NAND flash memory has been growing since Q4 2022, and the demand for DRAM is gradually increasing, and its selling price is also rising.
This means that from 2020 onwards, the cost of semiconductors will continue to rise, and in 2024, it will rise again, and in three years and six months, it will become a new cycle.
But now it seems that the semiconductor industry has entered a growth stage, and if the timing can be grasped, China's semiconductor industry will usher in a wave of explosive breakthroughs, and SMIC is one of the leaders.
The main factor for the smooth progress is that China's core is the fastest growing in this whole integrated circuit cycle, and many new factories have been built, and even 22 are under construction or planned.
According to the Ministry of Industry and Information Technology, from 2020, China's integrated circuit production will increase at an average annual rate of 10%, becoming the fastest growing region in the world, reaching 60% in the next three years and is expected to double in 5 to 7 years.
China has the world's largest chip consumer market and the world's electrical production center, China absorbs 3 4 of the world's chips, and China's chip production is growing at an astonishing rate, it will definitely occupy a considerable piece.
But now, with the development of the semiconductor industry, China's production capacity will be greatly increased, and even explosive development.