SMICAs the most outstanding in Chinese mainlandChipsManufacturing company, ranked among the world's wafersOEMNo. 5 in the factory, it has a unique 7nm process. The importance of this craft is self-evident, Kirin 9000sChipsThe successful use of this is a vivid proof of this. Once,SMICOverseas customers accounted for more than 50% of the revenue, with U.S. customers leading the way, contributing about 40% of the revenue. However, since 2019 the United States has pairedHuaweiAfter the crackdown,Chinese chipsManufacturing companies are aware of the need for autonomy and control. More and more Chinese IC companies are handing over ordersSMICConductedOEM, which led to a rapid increase in the number of domestic customers and revenue share.
In 2019, Chinese customers accounted for more than 50% of revenue, while the share of US customers dropped to 30%. By 2020, the share of Chinese customers has further increased to 55%, an increase of 10 percentage points compared to 2017. At the same time, the share of American customers fell to 28% in 2020. In order to undertake more orders from Chinese customers,SMICContinuously expand production and build a number of large-scale in ChinaChipsmanufacturing base to elevateChinese chipsCapacity.
After continuous efforts to expand the domestic market share, by 2021,SMICChina's share of revenue reached 65%, while the share of U.S. customers dropped to 23%. In 2022, the revenue share of Chinese customers further increased to 74%, while the share of US customers decreased to 21%. In the fourth quarter of 2023, the revenue share of Chinese customers soared to 808%, while the share of U.S. customers is only 157%。It is evident that in 5 years,SMICThe share of Chinese customers has changed dramatically, from more than half to 81%, while the share of the United States has dropped from 40% to 157%。
SMICThis shift marks its actionsChinese chipsThe leading companies in the manufacturing industry are becoming more and more alienated from the United States. This trend is rightSMICThere are pros and cons, and we will think about it together.
SMICFar from the United States, revenueCenter of gravityTurning to Chinese customers, forChinese chipsFor the manufacturing industry, this is undoubtedly a positive change. First of all, this means:Chinese chipsThe industry has achieved autonomy and control, and is no longer dependent on U.S. technology and markets. This is important for *** andEconomyIndependence is of great significance. Secondly,SMICThe rise can drive the wholeChinese chipsThe construction and development of the ecosystem will promote the interconnection and optimization of all links in the industrial chainChinese chipscore competitiveness. In addition,SMICThe success of the experience will also be useful for othersChinese chipsManufacturing companies play an exemplary role in promoting the progress and competitiveness of the entire industry.
However,SMICThere are also some challenges and risks associated with moving away from the United States. First, the United States remains the largest in the worldEconomybody and technology power, the loss of the U.S. market may affectSMICmarket share and profitability. Secondly, withSMICThe expansion in the domestic market, its dependence on Chinese customers will also bring certain risks, once it encounters the domestic marketEconomyUnstable orChinese chipsThe market is volatile,SMICmay be affected. In addition,SMICThere is also a need to deal with increased domestic competition and internationallyChipsThe fierce competition in the market continues to maintain technological innovation and market expansion capabilities.
In general,SMICStay away from the United StatesCenter of gravityTurning to Chinese customers isChinese chipsAn important milestone in the autonomous and controllable manufacturing industry. Despite some challenges and risks, this shift has been important for:Chinese chipslong-term development of the industry and the countryTechnologyStrength improvement is of great significance. SMICWe will continue to work hard to maintain a leading edge in independent innovation, technology upgrading and market expansionChinese chipsThe prosperity of the industry will make a greater contribution.
After the pairSMICFrom the observation and analysis of the transformation, we can see that the success of the enterprise is inseparableChinese chipsThe overall rise of the manufacturing industry and the huge demand of the domestic market. With China's emphasis on independent innovation and technological self-reliance,SMICAs an industry leader, it has gradually moved away from dependence on the U.S. marketCenter of gravityTurning to domestic customers. This change is both an inevitable consequence of the development of the industry and a resultChinese chipsAn important milestone in the industry's acquisition of autonomous control.
However, to achieveChipsThe all-round development of the industry and the enhancement of international competitivenessSMICIt is still necessary to continuously strengthen its own technological innovation and market layout. At the same time, enterprises also need to provide better policy support and resource guarantees to create a business environment that is more conducive to innovation and competition. Only through the joint efforts of the whole society,Chinese chipsThe industry can achieve a higher level of development for the countryEconomyDevelopment andTechnologyThe improvement of strength will make greater contributions.