My fintech empire.

Chapter 1251 [Really Getting Anxious]

If the entire domestic semiconductor industry chain achieves a technological breakthrough, it means that the chip, which is a bottleneck, will disappear from now on. It also means that industrial products under the modern industrial civilization system of mankind, from rockets to screws, can be independently produced under the domestic industrial system without relying on foreign imports.

Since then, we have successfully reached a key technological peak in the field of high-tech industry.

For the international semiconductor manufacturers in Europe and the United States, this is not only a disaster, but also an unprecedented crisis.

Data shows that in 2016, China's imports of integrated circuit chips reached a staggering $2271 billion, while oil imports in the same year were $1387 billion, surpassing America to become the world's largest oil importer.

Even so, the money spent on buying chips is more than $880 billion more than on buying oil, and chip imports are still soaring. It is estimated that the import volume for the whole year of 2017 will soar to $2600 billion, a growth rate of nearly 15%.

If we can achieve a technological breakthrough in the entire domestic semiconductor industry chain and complete the path of domestic substitution, we can save hundreds of billions of dollars in foreign exchange each year and achieve rapid growth in the domestic economy. The integrated circuit industry is a typical high value-added industry. How many European and American technology companies have been supported by it?

After completing domestic substitution, the domestic semiconductor industry will rise, which means that the profits will remain in the country, and practitioners upstream and downstream of the industrial chain will be able to get higher incomes, which will drive more employment and tax revenue. Isn’t the transformation and upgrading to high value-added industries for this?

But it would be a disaster for those old international semiconductor manufacturers in Europe and America. This is not an exaggeration. If they lose Greater China, the world's largest integrated circuit consumer market, those international semiconductor manufacturers will really die in large numbers and face a wave of bankruptcy and closures. Even those who survive will suffer a lot.

Still speaking of data, in 2016, global chip sales were US$3435 billion, of which the Greater China market accounted for US$2271 billion. More than 66% of the global chip market sales came from the Greater China market.

At present, the share of the domestic integrated circuit industry can only be included in the "other" option. In recent years, as Star Capital has invested heavily to promote the continuous improvement of the independence of the entire domestic semiconductor industry chain, the share has also continued to expand, but the absolute majority of the market share is still taken away by foreign chip production.

In particular, the bulk of the profits were taken away by foreign manufacturers, and the bulk of the profits were concentrated in the high-end chip field.

As long as high-end chips achieve technological breakthroughs, the bulk of the profits can remain in the country. If the profits of foreign semiconductor manufacturers decline or even drop sharply, they will not be able to maintain high R&D expenditures, and their chip iteration speed will inevitably slow down.

As one grows stronger, the other shrinks. Once domestic high-end chips catch up with them in the end, there will be a complete change of offense and defense, and an exchange of identities. Domestic semiconductors will get the bulk of the profits and will have more money to invest in the research and development of new generation products, thus realizing a positive cycle.

On the other hand, as the profits of international manufacturers decrease, they will have no money to invest in the research and development of new generations of products, making it even more difficult for them to compete. They will face lower revenue, lower profits, and even less money for research and development, thus entering a vicious cycle of negative feedback. The inevitable outcome will be large-scale liquidation and widespread bankruptcy.

So when the news from Xingyu Technology came out, it was widely rumored that the domestic semiconductor industry chain had completed a technological breakthrough. When this news reached the ears of overseas international semiconductor manufacturers such as OMEGA, they were not only shocked, but also extremely panicked.

And immediately began to verify the truth of the news through various channels.

……

The next day, senior executives of the Semiconductor Industry Association of North America publicly stated in an interview with the media that negotiations should be restarted to restore the supply of high-end chips to local companies in the Greater China market such as Xingyu Technology.

After all this talk, the implication is that the profitability and development of North American semiconductor companies should not be affected.

This is because the domestic semiconductor industry chain in the Eastern giant has broken through too quickly, far exceeding their original expectations, and has made them feel the crisis of survival. In the past few years, they thought they would not have to worry within five years, but now they suddenly realize that it is just around the corner, and they are really panicked.

Coincidentally, Gates, the former world's richest man and co-founder of Microsoft, also accepted a media interview today. During the interview, he talked about a wide range of topics. Gates once again talked about the regulation of high-end chips on Eastern companies such as Xingyu Technology. For this, he bluntly stated:

"The suppression of Xingyu Technology's chips has made them realize that the key to the rise of a great power is not a single GDP data, but technology. They have learned about the shortcomings of their own chip development and changed the original layout of chip companies. Not selling chips to them means that some people in China will lose their jobs, and they will also use this to accelerate self-sufficiency."

Gates had opposed this in a public interview a few years ago. He spoke out again this time, saying: "When facing a strong opponent, you either win with one strike or you will be counterattacked by it. This is a life-or-death choice."

Obviously, different voices have also emerged in America, and there are also great differences within the country. A while ago, some people in America proposed to impose sanctions on Matrix Quantum to curb the expansion of computing power of the Eastern power.

At this moment, another group of people began to exert their influence on public opinion, and a completely opposite voice emerged, calling for the resumption of the supply of high-end chips to Xingyu Technology, and hoping that Xingyu Technology and Qualcomm would join hands again to restart in-depth cooperation.

If it weren't for the rumors that Xingyu Technology's STAR5 would return and the domestic semiconductor industry chain would achieve a technological breakthrough, it would be impossible to have such voices and such a big change in attitude.

It's obvious that he is really anxious.

You should know that the Greater China market is currently the largest "funder" of the North American semiconductor industry. Almost 34% of America's chips are sold to the Greater China market every year, and its total revenue accounts for half of the North American chip industry.

North American semiconductor manufacturers and the entire industry are well aware that they cannot afford to lose the Greater China market, nor can they accept such a situation.

Facts have proved time and again that when you don't have the product, they will try their best to block you. Even if they don't block you, they will sell it to you at a very high price, and they will act as if you want to buy it or not, and make the client, who spend money, a fool. But when you really have the product, they will immediately get anxious and are even more afraid that you will not buy it.

When the news spread back to the mainland, it quickly attracted the attention of all kinds of spectators. When the netizens saw the news, they said they were very happy to hear it, and joked that America was schizophrenic, shouting that she couldn't sell it, but at the same time she was shouting that she wanted to sell it.

The series of events that are happening are also greatly affecting the choices and judgments of relevant domestic practitioners. For example, should they follow the Qunxing plan for the 7 trillion yuan plan?
Many times, choices are more important than hard work. Now all signs indicate that choosing to hang out with the stars is obviously more promising and has more money to earn. This is the general trend of the future.

……

(End of this chapter)