Chinese customers collectively turn to domestically produced chips, and Samsung and TSMC's advanced manufacturing processes are facing criticism!
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Against the backdrop of trade frictions between China and the United States, Chinese customers have abandoned international chip giants such as Samsung and TSMC in favor of domestic chips. This is a shocking change and a phenomenon worth paying attention to
Against the backdrop of trade frictions between China and the United States, Chinese customers have abandoned international chip giants such as Samsung and TSMC in favor of domestic chips. This is a shocking change and a phenomenon worth paying attention to. This not only reflects the rapid development of China's chip industry and the improvement of international competitiveness, but also demonstrates the enormous potential and demand of the Chinese market. At the same time, this has also had a significant impact on the global chip market landscape, posing unprecedented challenges and pressures to international giants such as Samsung and TSMC. In the coming years, with the continuous improvement of process technology and product performance, domestic chips are expected to achieve breakthroughs in more fields and engage in head-on battles with international giants. At that time, the global chip market may usher in a new reshuffle.
The rise of domestic chips and strong market demand
In recent years, the Chinese government has strongly supported the development of domestically produced chips, providing a large amount of funding, policy, and talent support. At the same time, domestic chip manufacturers in China are continuously increasing their research and development investment to enhance their independent innovation capabilities. Some leading companies, such as SMIC International, Huawei Hisense, and Purple Light Zhanrui, have made breakthrough progress in multiple fields and launched internationally competitive products.

In this context, the demand for domestically produced chips from Chinese customers is becoming increasingly strong. Whether it is mobile phones, computers, servers, the Internet of Things, artificial intelligence, automobiles, and other segmented markets, there are a large number of orders pouring into domestic chip manufacturers. According to statistics, the shipment volume of domestically produced chips in China reached 120 million in 2022, a year-on-year increase of 40% and accounting for 15% of the global market.
These data illustrate the fact that domestic chips have become the mainstream choice in the Chinese market. This is an encouraging achievement and a trend that cannot be ignored.
Samsung and TSMC encounter difficulties in advanced manufacturing processes
In stark contrast, international chip giants such as Samsung and TSMC have encountered unprecedented difficulties. Due to the significant loss of Chinese customers, the order volume of these companies has shown a significant decline. Especially in the high-end market, as domestic chip manufacturers are already able to provide a considerable level of products, Samsung and TSMC's previously dominant advanced process technology has also lost its appeal.

It is reported that Samsung and TSMC are currently actively promoting process technologies below 3 nanometers, with plans to achieve mass production by 2023 or 2024. However, these technologies require significant investment and complex equipment, and face technical challenges and market risks. If sufficient customers and application scenarios cannot be found in a timely manner, these technologies may become a burden rather than an advantage.
In fact, in the past few years, Samsung and TSMC have already felt the difficulties brought by technological advancements in the manufacturing process. Due to the increasingly complex and expensive process technology, they have to raise product prices to recover costs. However, this has led to customer churn and a decrease in profits. This creates a vicious cycle.
Domestic chip manufacturers accelerating catch-up
Although domestic chip manufacturers currently lag behind Samsung and TSMC by one to two generations in process technology, this does not mean they have stopped catching up. On the contrary, they are accelerating the advancement of more advanced process technology and seeking breakthrough innovation.

For example, SMIC has started mass production of the 14 nanometer process and plans to achieve mass production of the 7 nanometer process by 2023. Huawei HiSilicon has already produced the Kirin 9000 series processors using a 5-nanometer process and announced the development of a 3-nanometer process. Ziguang Zhanrui is also accelerating the promotion of processes below 28 nanometers and has reached a cooperation agreement with Intel.
These measures demonstrate the importance and determination of domestic chip manufacturers towards the advancement of process technology. They not only need to catch up with international giants, but also surpass them in certain fields.They are not satisfied with following others' footsteps, and in some aspects, they even need to explore their own path.
The future market pattern may be reshaped
From the current trend, it has become an irreversible reality for Chinese customers to collectively shift towards domestic chips. This will have a profound impact on the global chip market landscape. On the one hand, international giants such as Samsung and TSMC will face more intense competition and greater pressure; On the other hand, domestic chip manufacturers will gain more opportunities and greater space.

In the coming years, with the continuous improvement of process technology and product performance, domestic chips are expected to achieve breakthroughs in more fields and engage in head-on battles with international giants. At that time, the global chip market may usher in a new reshuffle.
summary
The collective shift of Chinese customers towards domestically produced chips is a phenomenon that deserves attention and analysis. It is not only a manifestation of the development achievements and confidence of China's chip industry, but also a result of changes in market demand and potential release in the Chinese market. At the same time, it has had a significant impact on the global chip market pattern, making international giants such as Samsung and TSMC face unprecedented challenges. In the coming years, with the improvement of process technology, domestic chips will make breakthroughs in more fields and face international giants head-on. At that time, the global chip market may usher in a new reshuffle
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