China reduces 24 billion chip imports, and the US chip inventory is seven months, but there is no choice but to reduce prices.

Since the beginning of this year, US chip inventory has become more and more intensive. By the recently, the US simulation chip leader has exposed the dilemma of American chips to the industry due to a large reduction in price reductions, highlighting that the once proud American chip has been in trouble.

China is the world's largest chip importing country. In 2021, China purchased $ 400 billion in chips, accounting for 60 % of the global chip market. Essence

China's two legs walk to develop the chip industry. In 2014, the integrated circuit industry fund development chip design industry was established. After several years of development, thousands of chip design companies have emerged in China. Especially in the past two years The blank of 5G RF chip, etc., meets the needs of chips in various industries.

In recent years, China has realized the shortcoming of chip manufacturing, expanding the production capacity of chip manufacturing, and purchasing optical carcies in the world. The large purchase scale shocked the industry. Therefore, China has to import a second -hand lithography machine from Japan to promote the price of second -hand light carvings in Japan more than doubled.

With China's efforts, China's chip production capacity has accounted for more than 15%of the global market, and it is tied to the third with Japan, while the United States accounts for global chip production capacity to fall to 12%, ranking fifth in the world. With the development of Chinese chip design and chip manufacturing, the self -sufficiency rate of Chinese chips has increased rapidly. In the first four months of this year, the import volume of 24 billion chips has been reduced.

China ’s big move to reduce the import volume of chips, and immediately make the American chip feel the pain. The first thing that the chip feels the difficulty of selling is the American RF chip company, because the sales volume of 5G mobile phones in the Chinese market has declined year -on -year since February. The demand for 5G mobile phones for radio frequency chips is 2-3 times that of 4G mobile phones. The sharp decline in sales of 5G mobile phones has led to a surge in 5G RF chip inventory. American RF chip companies have complained that inventory has reached more than seven months.

However, this is just the beginning. After the 5G radio frequency chip, the American simulation chip has also begun to appear excess. The US simulation chip leader recently reported that the quotation was about 90 % of the sale. They solve the inventory problem.

The surge in chip inventory is due to the rapid decline in demand and the impact of rapid production capacity growth. Global chip supply since 2020 and 2021 is not due to the increase in demand. In the past two years, the sales of mobile phones, cars, televisions and other products in the world have been lower than 2019. The sales of various commodities have fallen significantly since this year. The demand for chips naturally declines further.

As for production capacity, because of the actions adopted by the US chip in 2019, which leads to the safety of various economies around the world, the production capacity of the chip has been expanded, which has promoted the surge in the supply of chips. The purchase volume of American chips naturally decreases rapidly.

It can be said that all of this is the bitter fruit caused by the actions adopted by the American chip before. It is the so -called moving stones to smash its own feet. Its approach seriously damages the goodwill of the American chip, which makes it unwilling to rely too much on American chips. The development of its own chip replacement as much as possible, eventually led to the excess of American chips and reducing prices for sale.

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