A few days ago, the US chip giant Qualcomm announced its second-quarter performance, showing that its revenue fell by more than 20%, while its net profit was halved, which shows that after China reduced its imports of 140 billion chips in the past year, the negative impact on Microchip is spreading. It is not ruled out that more American chip companies are in trouble.
1. Maxic was hit repeatedly
Since the second half of 2022, a series of chip companies in the United States have fallen into losses. The first to suffer losses is Intel. Intel has lost money for three consecutive quarters in the first quarter of this year. Industry's highest loss on record.
The U.S. has lost money following Intel, and has lost money for two consecutive quarters in the first quarter of this year. In fact, Micron’s loss is even more serious than Intel’s. Its revenue is only 4 billion U.S. dollars, while the loss is as high as 2.3 billion U.S. dollars. The serious loss led to Micron said that it would no longer lower the price of memory chips, and raised the card of exemption.
After that, AMD, Western Digital, etc. suffered losses, and Western Digital became the worst company among American chip companies. After Western Digital suffered a loss, it quickly announced that it would sell itself to Japan’s Kioxia. The new company that merged with Japan’s Kioxia would be dominated by Japan. Just over two years ago, Western Digital originally planned to spend US$10 billion to acquire Japan’s Kioxia. The position of the owner was changed, and Western Digital was forced to sell itself to Japan's Kioxia, which caused a huge shock to the US chip industry, because in the past, American companies acquired Japanese companies, but now they are Japanese companies acquiring American companies.
Qualcomm was originally one of the better-performing companies among U.S. chip companies. It has survived the global chip industry’s cold winter caused by global chip supply oversupply in the past two years. However, its performance in the second quarter has plummeted, showing the blow to the U.S. chip industry. It is generalizing, which makes the US chip industry feel the cold wind.
2. The United States shoots itself in the foot
It can be said that the United States shot itself in the foot as a result of all this. Since 2019, the United States has continuously increased its measures against the Chinese chip industry, trying to use the power of the United States to dominate the global chip technology system to curb the development of Chinese chips.
The United States first took measures against a Chinese technology company, Huawei, to restrict cooperation between US technology companies and Huawei. After September 15, 2020, it prevented TSMC from manufacturing chips for Huawei and restricted US chip companies from supplying Huawei with 5G chips. The industry reacted quickly.
Considering the security of chip supply, other Chinese mobile phone companies have reduced the proportion of adoption of the US chip company Qualcomm and increased the proportion of new adoption of MediaTek, which directly caused Qualcomm to lose its position as the global mobile phone chip leader for the first time in 2020. None were able to regain that position.
China is also vigorously developing its own chip industry, relying on the existing domestic chip equipment and industrial chain to develop mature technologies such as 28 nanometers. In more than three years, China's chip production capacity has risen from the world's top five to the world's top three, breaking the memory Chips, radio frequency chips, analog chips, etc. are blank, and China's chip self-sufficiency rate has rapidly increased to more than 30%. With the rise of China's chip self-sufficiency rate, China's chip imports have steadily declined. The reduced chip imports from 2022 to the present are as high as 1400. billion.
The United States is the world's largest chip exporter. As China, the world's largest chip purchaser, reduces chip purchases, American chips are gradually feeling the chill. Just as the above-mentioned four chip companies in the US chip industry have suffered losses for more than a year, Now, coupled with Qualcomm's performance plummeting, it can be expected that more American chip companies will be in trouble in the future.
In the past, products manufactured in China were sold to the global market, but they could only earn meager profits, while American chips occupied the upper reaches of the manufacturing industry and earned huge profits. American chip companies such as Intel and Qualcomm made a lot of money. It can be said that each has its own income, but the United States brazenly restricts the supply of chips to China, which has caused the US chip industry to fall into the current predicament, and even the US chip industry will further decline, which has caused a huge blow to the US technology industry.