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China's Chip Industry Crisis: 10,900 Businesses Collapse, 30 Disappear Daily

The global semiconductor industry is facing a crisis with over 10,900 chip-related businesses in China deregistered or revoked since 2019, and an average of 30 closures per day in 2023. The US sanctions have further exacerbated the situation, leading to challenges in obtaining necessary equipment and parts. China's pursuit of technological independence in chip development is seen as unattainable in the globally integrated semiconductor supply chain.

Chip Industry Collapse in China

⚠️Over 10,900 chip-related businesses in China have been deregistered or had their licenses revoked since 2019.

⚠️Sharp increase in the number of Chinese chip company closures in 2023, averaging about 30 closures per day.

⚠️Global semiconductor industry facing challenges and potential slow recovery, with a forecasted 99.4% decrease in market size for 2023.

US Sanctions Impact

🚫US sanctions have affected Chinese chip companies, leading to difficulties in obtaining necessary equipment and parts.

🚫Huawei has established a secret network of wafer factories as an alternative path in response to the sanctions.

🚫YY Memory Technologies, a major Chinese semiconductor manufacturer, has faced challenges in purchasing equipment and parts due to the US trade blacklist.

Technological Independence Challenges

China's pursuit of technological independence in chip development is seen as unattainable in the globally integrated semiconductor supply chain.

Concerns raised about China's lack of competitiveness in many supply chain segments and the high cost of achieving complete independence.

Doubts raised about China's commitment to technological and scientific innovation due to the involvement of individuals like Chen Jin in chip fabrication scandals.

US Chip Restrictions and Global Impact

🔒US imposition of strict chip restrictions on Chinese companies.

🔒US aims to limit China's access to high-end GPUs and advanced chip manufacturing equipment.

🔒CCP military discussing multi-domain precision warfare integrating AI and Big Data for precision strikes against US military systems.

FAQ

What is causing the collapse of chip-related businesses in China?

The collapse is due to a combination of factors including US sanctions, challenges in obtaining necessary equipment and parts, and China's pursuit of technological independence.

How are US sanctions impacting Chinese chip companies?

US sanctions have led to difficulties in obtaining necessary equipment and parts, prompting companies like Huawei to establish alternative paths such as secret wafer factories.

Why is China's pursuit of technological independence seen as unattainable?

There are concerns about China's lack of competitiveness in supply chain segments and the high cost of achieving complete independence, along with doubts about its commitment to technological and scientific innovation.

What are the US chip restrictions and their global impact?

The US has imposed strict chip restrictions on Chinese companies, aiming to limit China's access to high-end GPUs and advanced chip manufacturing equipment, which has also led to discussions about precision warfare.

Summary with Timestamps

💻 0:00Chinese chip industry experiencing unprecedented wave of closures, with over 10,900 businesses deregistered or revoked since 2019.
⚙️ 3:31The impact of US sanctions on Chinese chip companies has led to challenges in obtaining essential equipment and parts for production.
🤔 6:39The challenges of China's pursuit of technological independence in chip development and the credibility of individuals involved.
🚫 9:59The US has imposed strict chip restrictions on Chinese companies, citing national security concerns and the potential threat of AI and Big Data integration in military operations.

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