Chip industry isn’t a tool to make money from Chinese Views

Domestic substitutes should not be the goal, The chip industry is not a money-making tool, THE CHIP SHORTAGE IS ONLY TEMPORARY.
The Chip Industry Isn't A Tool To Make Money From Chinese Views

Table of Contents

Domestic substitutes should not be the goal

From the value of chip products, nothing more than help customers realize (more) functions, help customers improve performance, and help customers reduce costs. It doesn’t matter that much whether the chip is domestic or not.

Therefore, when we define chip products and formulate specifications, we must keep in mind that we are customer-centric and help customers achieve greater value as the ultimate goal. Compatibility with a big foreign factory is not that important.

Only by realizing and doing this, can we stand firm and go abroad.

The chip industry is not a money-making tool

The chip industry is manufacturing, but it is definitely not a copy of the production line. Advanced lithography machines, EDA software, and numerous patent barriers are the three mountains of the development of the domestic chip industry, which can not be solved by throwing money in a short period of time. So please myopic capitalists stay out of the chip business.

  • Suggestion 1: To overcome these technologies, it is necessary to rely on long-term, cost-free, profit-free investment and organizational efforts by the state. The general enterprise is categorically unable to do, this because the enterprise has the profit target, has the investor’s pressure, and is impossible to stick to the project that does not make a profit for a long time.
  • Suggestion 2: To overcome these technologies, researchers, experts and scientists must be able to focus on research and development without having to worry about housing and schooling for their children.
  • Suggestion 3: To overcome these technologies, it is necessary to continuously industrialize the phased results, apply the products to the real chip R&D process, and continuously run in and improve with real customers.
  • Suggestion 4: To overcome these technologies, the entire chip industry, both upstream and downstream, must act to develop policies to encourage interworking, continuous innovation, and corporate alliances and mergers.
  • Suggestion 5: To overcome these technologies, it is necessary to make and improve relevant laws to further regulate the market.

Money can’t solve these problems.

The chip shortage is only temporary

Is the chip industry short of talents? Yes, The author thinks there are the following reasons:

Demand Amplification:

  • Existing enterprises expand the scale and increase product lines
  • Traditional Internet companies set up chip departments or chip subsidiaries
  • A large number of new companies were formed

The total number of relevant majors in the school is small:

  • Integrated circuits used to be an unpopular industry
  • Employers’ expectations have risen to recruit students who can do the work directly, so a large number of undergraduates are not going into chip design
  • Other industries have high barriers to entry into chip design

So it’s essentially supply and demand, and because there are a lot of bubbles in demand, it’s going to ease over time.

Biden’s signing of the chip bill will do more good than harm to domestic semiconductors

The author thinks the advantages outweigh the disadvantages based on the following points:

  1. Strengthened the determination of the country to realize the localization of chips from top to bottom
  2. Extending the expectations and patience of the capitalists who entered the market two or three years ago
  3. Prolongs the time for trial and error and run-in of domestic chips in the industrial chain, and increases the opportunity for mass production
  4. Polarization is more obvious, inferior projects are eliminated, and resources are inclined to high-quality projects

Of course, there are disadvantages:

  1. Advanced manufacturing process
  2. Advanced technology EDA software
  3. Unable to participate in the formulation of some industry standards and norms

We should further improve the quality of patents, enhance the awareness of copyright and perfect the copyright law

Most domestic chip enterprises have begun to attach importance to patent applications, patents to a certain extent to prove the strength of the company, the number of patents is also one of the necessary conditions for listing.

But some domestic patents are of low quality. Do some wordplay, take a common, familiar technology, package it up and patent it. Such patents are not innovations based on technology.

Part of the enterprise copyright awareness is weak, operating systems, office software, EDA software, and often piracy. And business managers do not care, about their own cost savings and are complacent. Chip products often “learn from each other” and “learn from each other”.

So, in this environment, there is a long-standing problem: low-end price wars.


DiskMFR Field Sales Manager - Leo

It’s Leo Zhi. He was born on August 1987. Major in Electronic Engineering & Business English, He is an Enthusiastic professional, a responsible person, and computer hardware & software literate. Proficient in NAND flash products for more than 10 years, critical thinking skills, outstanding leadership, excellent Teamwork, and interpersonal skills.  Understanding customer technical queries and issues, providing initial analysis and solutions. If you have any queries, Please feel free to let me know, Thanks

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