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China Bucks the Market and Ramps up Chip Production Capacity

Update time : 2022-10-11 11:15:20

On July 19 this year, Spain's "Economist" website published an article with the above-mentioned title, predicting that the global semiconductor market has quietly withdrawn from the golden period that lasted for more than two years, and is heading for stagflation and saturation. Even the general trend of excess, gradually transition.

"Now, the industry may face the opposite situation in the near future: overcapacity, a large inventory backlog. Just like during the new crown epidemic, people hoarded toilet paper like crazy. Once the demand side is affected, then the huge inventory will decline ahead of schedule. arrival."
Between 2020 and 2021, the global semiconductor industry once seemed to return to its heyday in the early 1990s. In 2020, when the global economy was severely impacted by the new crown epidemic, and almost all industries except the pharmaceutical and medical industries were in a state of decline, the profit of the semiconductor industry increased by 11% against the trend. By 2021, the growth will exceed 25%.
Analysts in Europe and the U.S. attribute the main problem to a shift in public consumption attitudes in the post-pandemic era and the complete end of national subsidy policies. After all, the recent wave of consumer electronics boom started from April to May 2020, before and after the introduction of national epidemic blockade policies, and reached a climax when the United States and Europe were “distributing money” to deal with the economic contraction.
However, this is only half of the problem. As for the other half, from China, the world's largest OEM equipment production center, the demand for imported semiconductor components has dropped sharply.
According to US media statistics, in the first seven months of this year, China's chip imports showed a steady downward trend, with a total reduction of 43 billion chips.
In contrast, it is the continuous growth of domestic chip production capacity in mainland China. According to the total converted production capacity of the existing wafer factories in mainland China, as of July this year, the converted daily semiconductor production capacity has exceeded 1 billion pieces. Last year, that number was just over 850 million.

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