The chip industry is a "weak industry" in China, with most of the chips still imported. But that's why it's so big market. Just the import substitution, will be able to come up with hundreds of billions of trillions of industry, not to mention, the future of the Internet of things and 5 g industry, demand for chips, form more will grow out of a lot of new industries, the demand of the chip is growing every year.
The golden age is not an aera of industrial maturity, but a period of rapid growth. In an industrial market, the market share will be carved up, and several giants will form a monopoly. In a rapidly growing field, everything is uncertain, and there will be a lot of new industry giants. In the course of development, there will be many new opportunities for the development of infrastructure, supporting services, and expansion of the industrial chain.
This golden age has already begun. And the industry is fully mature, at least for more than two decades, and it's a market size of hundreds of thousands of billions of dollars a year, based on trillions of dollars a year. For China, this means new sources of economic growth, and for small and medium-sized economies such as South Korea and Taiwan, the scale of the industry is enough to serve as a "GDP".
The overall picture of China's chip industry
China's annual cost of imported chips is a huge astronomical figure. According to the general administration of customs 2016 full-year figures, China's imports of integrated circuits for $227.026 billion, crude oil import amount is $116.469 billion during this period, the integrated circuit import amount of crude oil imports is nearly two times.
This is a staggering number, and more than 60% of China's oil is dependent on imports. The number of cars in China, the amount of oil that is imported every year, is, of course, terrifying. And when we import so many chips every year, what is the big IT country, the big information country, at least IT is the undergas, after all, the basic things are in the hands of foreigners.
Of course, you can't just read the Numbers. Because in the middle of this number, there will be some special cases. China's chip imports, in fact, are accompanied by massive exports of electronics. There is an assembly fee and a processing fee in the middle, and the brand is earning the brand money. For example, apple's phones, such as foxconn, buy chips and accessories from abroad, and assemble them for export. Because of the apple mobile phone key parts, such as chips, display, are sourced from Japan, South Korea, so apple mobile phone production in China, China is only earned a little manual processing fee, a very low percentage of the cost of the apple machine.
In addition to huawei, domestic phones do not have domestic CPU chips, so China makes most of the world's phones. But the profitability of the whole mobile phone industry all over the world, most are high-end apple away (over 80%), although samsung mobile phone market share drop, but with huge profits in mobile phone parts, still take large profits. There is very little profit left for domestic handset makers.
The handset industry also has its own brands, such as huawei, xiaomi, meizu, vivo, oppo, and so on. Huge sales, not much profit. Instead, qualcomm, samsung, SONY and Toshiba, which sell parts, make a big profit every year. Samsung, for example, suffered a mobile phone crash last year, and this year has seen a rise in the price of memory chips, the loss of the levees, and even a rebound in corporate profits.
In fact, the lack of autonomous chips, no matter how much sales they do, is to work for foreigners. This is not the case in the mobile world, where lenovo's annual profit margins are close to zero, and some are still in the red. There is a song that says, "the worst thing I can think of is selling computers with you...
The importance of the chip industry means that, of course, foreign countries are aware of it. In fact, Taiwan's chip industry is so developed that western countries have nurtured and have a lot of economic significance outside of economic significance.
So chip this industry, abroad have already reached consensus, the whole industry chain to blockade in mainland China. Chip industry and basic software industry (such as operating system, database, middleware), is the United States in the world of the industrial chain, not only has the huge profits, and support the American national strategy (such as overseas listening). The big profits in the IT industry, however, support America's high financial stock market.