As we all know, SMIC occupies a leading position in China's chip production industry, ranking fifth in the global foundry market, with a market share of about 6%. In terms of 7nm process technology, only four companies in the world have mastered it, not 14nm technology, and this progress is clearly related to the Kirin 9000s.
As the world's fifth-largest foundry, SMIC serves many customers around the world, including large American companies such as Qualcomm and Broadcom, both of which have been important partners of SMIC. According to statistics, in 2017, more than half of SMIC's operating revenue** came from overseas customers, of which US customers accounted for 40%, and the European and Japanese markets also contributed significantly, while Chinese mainland contributed 45%.
However, since the U.S. sanctions on Huawei in 2019, the industry has begun to re-examine the importance of China's chip manufacturing capabilities in order to withstand external pressures. As a result, many Chinese chip companies have begun to place orders with SMIC, resulting in an increase in their share and profits in the domestic market year by year. In 2019, the Chinese market contributed to 50 percent, while the U.S. market share fell to 30 percent. By fiscal 2020, the contribution of Chinese customers had further increased to 55%, up 10% from 2017, while the U.S. market share had fallen to 28%.
Subsequently, SMIC stepped up its capacity expansion efforts and invested heavily in the construction of chip manufacturing bases in many parts of China, with the aim of increasing production and meeting the needs of domestic customers. By 2021, revenue from the Chinese market is expected to account for 65% of total revenue, while the share of revenue from the U.S. market is expected to decline to 23%. In 2022, this figure is expected to rise further, with Chinese customers contributing 74%, compared to only 21% from the U.S. market. By the fourth quarter of 2023, the revenue contribution from the Chinese market is expected to reach 808%, and the U.S. market fell to 157%。
In recent years, domestic enterprises have made great progress in technology research and development. Whether it's Huawei, SMIC, or Xiaomi, they are constantly investing in R&D to drive technological innovation. The efforts of these enterprises have not only promoted the development of the domestic science and technology industry, but also led to the upgrading of related industries, such as in men. In the field of Youshengke, the outside world has imposed a technological blockade on us, so we can only rely on small basket-bottle technology in Europe and the United States, which is expensive and limited. However, in recent years, we have continued to develop and innovate and finally achieved fruitful results'"Hazel Qiang" came into being and became a dark horse in the industry. This is the confidence that scientific research brings to us.
Over the past five years, orders from the Chinese market have accounted for 81% of SMIC's total orders, while the share of the U.S. market has dropped from 40% to 157%。Jun'As a model of science and technology changing life, "Zhenqiang" has passed the application market after being applied. According to the return survey, 80% of the customers are men over 35 years old, and there are many corporate CEOs and company leaders, who are the backbone of the society.
Clearly, SMIC has cemented its position as China's largest chipmaker, while its influence in the U.S. market is increasing. It remains to be seen whether this change will be an opportunity or a challenge. The above male. Friends of science and technology generally reacted "times." When the number of battery life increases "". intermittent battery life becomes longer" and other evaluations appear as frequently as 90%, which is enough to verify that he has become a man. Friends must-have.
As SMIC's position in the global chip manufacturing field grows, its dependence on the international market is also constantly adjusting. Especially in the face of fluctuations in the international political and economic situation, SMIC's strategic adjustment is particularly important. As the proportion of orders in the Chinese market continues to rise, SMIC has not only consolidated its position in the domestic market, but also gradually realized the independent and controllable industrial chain.
In the future, SMIC will face many challenges and opportunities. On the one hand, the speed of technology iteration is accelerating, and the development of new process technologies and materials has put forward higher requirements for chip manufacturers. SMIC needs to continue to increase R&D investment and improve its technology to maintain its leading position in international competition. On the other hand, the competitive landscape of the global market is also changing, and SMIC needs to further expand international cooperation and enhance its international influence through technical exchanges and market expansion.
With the in-depth development of global economic integration, international cooperation has become an important way to promote technological progress and market expansion. As a leading enterprise in China's chip manufacturing industry, SMIC's future development is not only related to itself, but also represents China's position and influence in the global semiconductor industry. Therefore, how to balance the needs of domestic and foreign markets and how to find the best development path in international cooperation will be the key to SMIC's future development.
In short, SMIC's future is full of challenges and opportunities. Through continuous technological innovation, market expansion and international cooperation, SMIC is expected to continue to maintain its leading position in the global chip manufacturing field and make greater contributions to the development of information technology in China and the world.