China awakes: As Chinese wafer market shares increasing the chip production stagnate in America

updated at 2018-10-31 18:52:06

That is the truth, the chip development in China falls behind some developed countries like America, Japan and Korea because of accumulation of technology at an early stage. Decades of barrier in developing chips, it seems hard to catch up in a skyrocketing speed for China. China is awaking in a rapidly developing time, and it has greatly changed in chips.

    Take a look at this group of data, Hisilicon and UNIS are two Chinese enterprises on the list of TOP10 Fabless in 2017. Both of them quickly developed last two years and respectively promoted 21% and 9%. Relatively, both chip makers in R & D and production shows that there are position and discourse for China. But wafer fabrication is very important to make good chips in addition to research and development.

    As a result, China has a great increase in global wafer market shares, among the downstream industries of chip making. According to the latest surveys, although America has a high market share in wafer with no rises, which means it is in a saturation and stagnates. It doesnt mean they dont produce chips, but cant break though in a short term. On the contrary, Chinese foundries have a great increase with 51% market shares,  better than Europe, Japan and Korea.

    It depends on the chip developing environment in China. For example, SIMC implements 14nm technologies of wafer fabrication with a yield over 95%. Though 7nm technologies havent been archived, it is widespread,The most profitable isnt technology but mature technology. In other words, the 14nm technologies can be adequately used to maximize profits by Chinese foundries, when Samsung and TSMC are stick to 7nm technologies they will gain more clients. After all, it isnt sure how long will be cost by Samsung and TSMC.

    Technology giants pay attention to the development of AI chips, a whole new direction. Huawei is considering the cooperation with Microsoft to create its own environment of AI chips. Meanwhile, Kunlun AI chip is developed by Baidu and Huangshan 1 is typed out by AMAZFIT. Each small step contributes to the accumulation which significantly displays the development of Chinese chips.