China Chip ushered in the opportunity to complete the chip industry cycle in 3 and a half years!
How long has it been since the last fries price hike? In the second half of 2020, to be exact.
CPU, GPU, NPU, DRAM, NAND flash, wafers, etc., are all increasing in price. **has extended to the entire field of chips, everything is going crazy**, and even the chips that were originally in short supply have multiplied in the past few months**.
Whether it's TSMC, Samsung, or SMIC, whether it's Huahong or China Jinghe, they're all crazy about expanding their production capacity.
But later, as chip production increased, the demand for chips became less and less, and by 2022, chip sales began to decline, leading to a decline in sales in industries such as mobile phones and digital technology, which in turn led to a sharp decline in chips**.
From 2022 to 2023, the ** of chips has been **, especially in 2023, the ** of DRAM and NAND flash memory is **50%, and Samsung, SK hynix, Micron and other companies have suffered heavy losses, and these three companies alone have lost more than 1,500 yuan.
All chipmakers are spree-cutting prices and production cuts to keep costs down.
This is indeed a good strategy, as the entire semiconductor industry will see a turnaround in the second half of 2023 and into 2024.
The growth of DRAM and NAND flash has skyrocketed since Q4 2022 and continues to increase as the market becomes more demanding.
This also means that chips will be again in 2020 (i.e. three and a half years later) and enter a new stage of development.
Judging from the current situation, China's chip industry is in a stage of rapid development, and if we can seize this opportunity, SMIC's position will be more stable.
What does this mean? In terms of production capacity, China's chip industry is developing the fastest. There are currently 22 plants under construction or nearing completion.
Since 2020, China's chip production has been growing at a rate of more than 10%, making it the world's largest market. According to authorities, China's chip production will increase by 60% in the next three years and double in five to seven years.
China is the world's largest semiconductor market and the world's largest electronics manufacturing center, accounting for two-thirds of global wafer production, and its market share will continue to grow as wafer production increases.
But now that the semiconductor industry is starting to recover, China's production capacity is also increasing significantly.