As we all knowSMICIt is the most powerful and influential in Chinese mainlandChipsOne of the manufacturing enterprises. As a global waferOEMThe factory ranks 5th among the enterprisesSMICIt has excellent performance in the process and is one of the only 4 manufacturers in the world with 7nm process. This feat is for:Chinese chipsThe field of manufacturing is of great significance. SMICThe outstanding performance is due to the continuous development of its technical strength and customer base.
SMICThe reason why it became globalChipsManufacturingOEMThe leader is not only in its superb technical level, but more importantly, in its wide coverage of the customer base. Such as Qualcomm,Broadcomand other U.S. companies are choosing to mature in large numbersChipsThe order is handed overSMICOEM。These data show that in 2017,SMICOverseas customers contribute more than 50% of the revenue. Especially for American customers, for:SMICIt contributed about 40% of the revenue, and other customers in other regions such as Europe and Japan also participatedSMICIt has brought considerable economic benefits. Things changed in 2019, though, and the U.S. rightHuaweiThe crackdown has allowed the industry to see the domesticChipsThe importance of manufacturing.
Facing the United States rightHuaweiThe suppression of China is independently developedChipsManufacturing has become even more important. SMICAsChinese chipsLeading enterprises in the manufacturing industry actively respond to the domestic market demand, gradually undertake more orders from Chinese customers, and promote business development in tandem with them. In the process,SMICThe number of domestic customers has gradually increased, and the contribution to revenue has also increased year by year.
In 2019, the revenue share of Chinese customers reached 50%, while the revenue share of US customers fell to 30%. And withChinese chipsThe vigorous development of the industrySMICContinuous expansion of productionInvestmentsMore than one was builtChipsmanufacturing base, upgrading the domesticChipsCapacity. ThisInvestmentsInitiatives promptedSMICReceived more orders from Chinese customers, further strengthening its domestic reachChipsSupport for the manufacturing industry. By 2021, the share of revenue contributed by Chinese customers had increased to about 65%, an increase of 10 percentage points from 2017, while the share of the United States had fallen to about 28%. In 2022, the share of revenue contributed by Chinese customers further increased to 74%, while the share of revenue contributed by US customers decreased to 21%. By the fourth quarter of 2023, the revenue share of Chinese customers will be as high as 808%, while the contribution of US customers is only 157%。
SMICIn the past five years, due to:Chinese chipsThe strong rise of the industry has led to significant changes in its customer structure. The revenue share of Chinese customers has grown from less than half to 81% today, while the share of orders from American customers has dropped from 40% to 157%, this illustratesSMICInChinese chipsThe importance and influence of the manufacturing industry are constantly increasing.
SMICMoving further and further away from the United States, although there may be some challenges to a certain extent, it is generally rightSMICThe pros outweigh the cons. First of all, the increase in Chinese customers has enabledSMICAble to better meet the needs of the domestic market, promoteChinese chipsfurther development of the industry. Secondly,SMICThe strategic transformation is of positive significance for reducing dependence on the U.S. market and improving the independent and controllable ability of domestic industries. Finally, the rapid growth of the Chinese market is:SMICIt provides more opportunities and space for development.
SMICIts success is not only due to its own strength, but alsoChinese chipsThe epitome of the rapid rise of manufacturing. However, just rely onOEMPatterns are not enoughChinese chipsThe industry still needs to further enhance its R&D capabilities, improve its core technology level and independent innovation capabilities. SMICIn the future, we need to pay more attention to independent research and development and promotionChinese chipsThe industry is transforming to high-quality development to maintain competitiveness and continue to lead the development of the industry.
SMICAsChinese chipsThe leader of the manufacturing industry will continue to be in the futureOEMThe field plays an important role for:Chinese chipsThe further development of the industry provides solid support. It is getting farther and farther away from the U.S. marketSMICThe significance of the strategic choice is not only to weaken dependence on the U.S. market, but more importantly, to strengthen the independent and controllable ability of domestic industries. SMICThe success isChinese chipsThe epitome of the rise of the industry, whileChinese chipsThe vigorous development of the industry is also forSMICIt has brought a broader market and development opportunities. I believe that with the support of **,SMICWill continue to grow and develop, for the promotionChinese chipsThe industry has made greater contributions to leapfrog development.