Chinese chips have not been overthrown, but American chip companies have “bled” 14 trillion

In fact, the United States has been cracking down on China’s chip industry. In 1949, the United States set up the Paris Coordinating Committee, or “Batumi” for short. At that time, 17 developed countries were members, targeting the Soviet Union and New China, and imposed embargoes and trade restrictions.
Later, after the collapse of the Soviet Union, the “Batumi” survived in name only. So in 1996, the United States joined 33 countries to establish a new export control mechanism in Vienna, Austria, to replace the “Batumi”, that is, the “Wassenaar Agreement”. Later, the member countries expanded to 42 countries.
Chinese chips have not been overthrown, but American chip companies have “bled” 14 trillion
These 42 countries are basically some industrial and technological powers like the United States, so to some extent, these 42 countries represent the world’s top scientific and technological level. Once these 42 countries impose a blockade on which country, how severe it will be, just think about it.
China is not a member of this agreement, so it is restricted. The priority is Level D, which is only a little better than North Korea and Iran. Many advanced technologies and equipment are restricted, including but not limited to the chip industry, such as EUV lithography, etc.
Chinese chips have not been overthrown, but American chip companies have “bled” 14 trillion
You can imagine how difficult it is for China Chip to break through under such a blockade, but China’s chip industry has come out step by step under the blockade. In 2020, China’s chip capacity has surpassed that of the United States.
Like SMIC’s 14nm technology, Huawei’s Kirin chip is not inferior to Apple A chip and Qualcomm Snapdragon chip. China’s 5G technology is the world leader, and electric vehicle technology is the world leader
So in recent years, the United States has intensified its efforts to impose a new round of sanctions and blockades on China’s chip industry, which has expanded its scope.
Chinese chips have not been overthrown, but American chip companies have “bled” 14 trillion
However, from the perspective of the situation in 2022, although China’s chip industry has been affected, the fundamentals are still there, the market is still there, and it has not fallen at all. However, the chip enterprises in the United States have suffered serious “bleeding”. If viewed from the capital market, it has fallen by 14 trillion yuan.
From January 2022 to the end of January 2023, many of the chip giants in the United States, excluding Apple, such as Intel, Micron, Qualcomm, Broadcom, Applied Materials, AMD, and Nvidia, have been cut in the capital market. These companies have lost at least $2 trillion in total, which is at least 14 trillion in RMB. In 2023, many enterprises have to lay off workers on a large scale because of poor performance.
Analysts from Citigroup and other institutions said that in the long run, (the new U.S. export regulations) will indirectly affect the development opportunities of global semiconductor manufacturers, and the latest U.S. restrictions are “bad news” for the global semiconductor industry.
Chinese chips have not been overthrown, but American chip companies have “bled” 14 trillion
Many people may say that this is actually caused by the market. Even if it is not depressed, it is estimated that the market demand will also be affected. It cannot be far-fetched to think that the loss of 14 trillion yuan is caused by the depression.
But we all know that in the past few decades, the reason why the industry has shown today’s prosperity depends on the global market and global cooperation and innovation, which is also the core driving force for the development of the semiconductor industry.
Today, this global integration is cut off by Americans, which will inevitably cause a huge impact on the development of the chip industry, which is the root cause.