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July US Exports $15.4B, Vast Gap with China's Chip Exports

Preface

With the advancement of technology, people have become increasingly reliant on electronic devices, and the part that can be regarded as the "heart" of electronic devices is the chip.

Countries place great importance on the development of the chip industry, considering it to be a product that can seize the initiative for the future. Therefore, research and production of chips have become a subject of competition among various countries.

Recently, media data has shown that the United States' chip sales in July reached an astonishing $15.4 billion, accounting for about 30% of the global chip market share.

So, how much is the chip export volume of China, which is also known as one of the world's two major economic entities?

The United States' chip export volume sets a new record

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As the world's largest economic system, the United States has always regarded itself as the hegemon of the Earth and has spared no effort in the development of chips. At the same time, because the United States started developing chips early, it has always been ahead of other countries in chip development.

This has also led to many countries that are unable to develop chips on their own choosing to purchase from the United States. At the beginning, our country was no exception, so the import and export volume of chips in the United States has been continuously increasing.

In July, the United States' chip sales volume reached $15.4 billion, with an astonishing growth rate. However, the chip industry in the United States is not perfect. The United States does not have enough human resources to carry out large-scale production.The United States has vast land and a sparse population, making human resources its most important asset. This has led to the U.S. chip production policy focusing primarily on selling high-end chips, while the low-end chip market has not been able to secure a significant share.

Chinese chips have broken through numerous blockades and are gradually rising.

The beginning of China's chips was actually similar to that of the United States, both starting to explore the semiconductor field around 1950. However, the U.S. later defined chips as a commercial domain, while China defined them as a military domain.

This has resulted in China's chip technology in the military field being almost at the top globally, but in the commercial industry, chips have always been in an embarrassing state of being undeveloped.

China began to engage with semiconductor technology in 1950 and was among the earliest globally. However, China's first integrated circuit was born 15 years later, seven years behind the United States and ten years behind South Korea, one of the later chip giants.

It was not until the 1970s that China's chip industry began to get on track, and China started to actively recruit talented individuals to develop its chip technology.

By the 1990s, chip technology had basically matured, but in order to cash in quickly, major Chinese companies gave up on originality and began to import from abroad, which led to the stagnation of China's chip industry once again.

Not to mention the subsequent "Loongson-1" incident and "Red Core" incident, which once paralyzed China's chip industry. It was only in recent years that China's chips gradually recovered and began to emerge on the world stage.

Unlike the United States, which only sells high-end chips, China's chip exports mainly rely on abundant human resources for processing and exportation. This means that other countries take the lion's share of profits, while China is only receiving the earnings from manual labor.

Therefore, looking solely at import and export sales, China's export volume has been at the top for many years. In July, for the first time, it was surpassed by the United States in sales volume, with China's chip sales reaching $13.9 billion.Nowadays, our country has recognized the importance of chips, but it is already too late compared to other countries. When our country wanted to develop chips, we found that we didn't have the tools and key technologies for chip research and development.

At this time, the United States, which has always regarded itself as the hegemon, has already noticed the rapid development of our country's chip industry and began to impose various restrictions on our country.

In the near future, the United States has been continuously issuing new regulations, the main meaning of which is to block all advanced equipment imported by our country, making it impossible for our country to better conduct chip research. After all, if you don't even have the tools, what else can you research?

At the same time, the United States has also begun to exert pressure on its allies, asking them to stop selling high-end equipment to China, just like the United States.

However, our country has not succumbed because of this. With the efforts of many talents, our country has begun to develop our own products, such as 5G chips, which our country was the first to develop.

Even in the face of these layers of blockades, our country has still made a breakthrough in the encirclement. However, due to our country's late development, our country has not yet invented the key equipment for chip manufacturing - photolithography machines.

A Dutch company is the leader in the research of photolithography machines, so our country's photolithography machines have always depended on imports from it. However, just recently, it is estimated that under the pressure of the United States, the Netherlands also said it would restrict the export scope of photolithography machines.

The global chip market is surging undercurrents

Behind all these events, it symbolizes the surging undercurrents of the international situation. Now, our country's scientists are also trying to complete the research and development of photolithography machines as soon as possible. It is expected that our country will soon have complete autonomy in the chip field.

Now, the chip market in the United States is also decreasing day by day, because the United States has not been able to produce results. As the most famous semiconductor company in the United States, Nvidia's market value just broke through 3 trillion US dollars, but due to the long-term inability to produce results, its market value has evaporated by nearly 400 billion US dollars.In contrast, China, which faces numerous challenges, is making significant strides in the development of its chip industry. Not only has it achieved breakthroughs in multiple professional technologies, but the country has also invested a substantial amount of capital into chip research and development, with an expected annual investment reaching $50 billion.

Summary:

From the perspective of July, although the U.S. chip industry has seen an increase in sales, the overall situation is beginning to decline, which presents opportunities for other countries around the world.

As our country places increasing emphasis on the chip industry, we believe that it won't be long before we see the birth of a chip that is uniquely ours, made in China.

It is anticipated that when that time comes, no country will be able to prevent China from advancing to the forefront of chip technology. China will also take up the mantle of leading global chip technology.

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