U.S. Chip Titans Face Earnings "Explosions"
Led by the United States, Western developed countries have established a decades-long technological monopoly in the chip industry, thereby reaping enormous profits. Consequently, the U.S. absolutely will not allow enterprises from other countries to pose any threat to American companies.
Especially in response to the rapid rise of our country's high-end industries, the U.S. has employed every trick in the book to suppress and restrict them. From the Wassenaar Arrangement to the CHIPS and Science Act, and then to the Chip 4 Alliance, it can be said that from high-end chips to photolithography machines, and then to chip design software, there is a comprehensive and seamless blockade, with the purpose of restricting the development of our country in high-end industries.
Among the high-end industries in our country, Huawei can be said to be one of the most representative companies. Because a private enterprise has actually reached a level that makes the world's most powerful country, the United States, afraid.
Therefore, in the past few years, the U.S. suppression of Huawei can be said to be step by step.
This is not, recently, according to multiple foreign media reports, the U.S. is considering a comprehensive ban on American suppliers providing any products to Huawei, including 4G products, WiFi chips, artificial intelligence, and high-performance computing and cloud computing products. It also joined forces with Japan, the Netherlands, South Korea, and other countries to comprehensively prevent the development of Huawei. The bill is planned to be implemented in May.
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But this time the wind vane has changed, and the U.S. has miscalculated. In response to this behavior, foreign media said that the final blockade has become "self-harm"! Representatives from various countries have also expressed their criticism of the U.S. chip bill. What exactly is going on? Let's continue to look down.
Just after the U.S., Japan, and the Netherlands reached an agreement, a huge cold wave swept through global semiconductor companies, and some American giants such as Intel, Qualcomm, Nvidia, and Amazon collectively "exploded."
As a world chip giant, Qualcomm's financial report for the first quarter of the 2023 fiscal year shows: the quarterly revenue was $9.46 billion, a significant decrease of 12% compared to the previous year's $10.7 billion; the net profit was $2.2 billion, a decrease of 34% compared to the previous year's $3.4 billion. The sharp decline in net profit led to a 7% plunge in Qualcomm's stock price, and its market value has shrunk by nearly $60 billion in the past year.
The U.S. chip hegemon Intel also released its revenue report for 2022: the total revenue was only $63 billion, a year-on-year decrease of 20%; the net profit was $8.014 billion, a year-on-year decline of 60%, setting a historical low since 2016. In addition, the net profit attributable to ordinary shareholders in the fourth quarter was -$664 million, a year-on-year decrease of 114.36%. Under pressure, Intel's CEO took the lead in cutting his salary by 25%, and executives cut their salaries by 10%, in order to safely get through the winter.
Looking at the total market value of the entire U.S. semiconductor industry, it has evaporated by $1.81 trillion. The major giants account for 80% of the share, among which AMD's decline is 58%, and Nvidia's decline is 54%.Due to the triple downturn in performance, profits, and the stock market, some American tech giants such as Intel and Amazon have ushered in a wave of layoffs. According to data, since 2023, there have been 326 large-scale layoffs in tech companies worldwide, affecting more than 100,000 people. The three giants, Amazon, Microsoft, and the parent company of Google, have laid off a total of more than 40,000 people, and Meta has already laid off 11,000 people last year. Even Apple has been rumored to have a layoff plan, and Cook has voluntarily reduced his salary by 40%.
Although the United States' export controls on our country's enterprises have delayed the development of our country in the high-tech industry, they have also caused serious damage to American companies, that is, American chip companies have collectively exploded first. Isn't this a "hurt the enemy by eight hundred, and damage oneself by a thousand" behavior?
In response, Qualcomm was the first to stand up and said: They expect to continue to provide Huawei with 4G and other chips in 2023, because the license held by Qualcomm can continue to provide Huawei with related products and technologies in 2023.
Qualcomm's move is nothing more than trying to stabilize its performance and stock price, and at the same time, it implies that Huawei should stock up more within the validity period to achieve the purpose of clearing inventory, thereby promoting Qualcomm's performance growth.
Representatives from various countries have also expressed their criticism of the U.S. chip bill. The Netherlands said: We need open trade, protectionist actions are not conducive to maintaining the health of the semiconductor manufacturing industry chain. Intel said: China is an important part of the global supply chain, and the Chinese market share cannot be ignored. Volvo said: Criticize the U.S.-European chip trade policy driven by power.
Jon Bateman, a senior researcher at the International Peace Research Institute, said: The United States uses the chip bill's restrictive measures to curb China, which not only damages the free choice rights of its allies but also harms the United States' own interests.
The chip war has not even started yet, and the backyard of the United States has started to catch fire, isn't that ridiculous?
In contrast, the development of Huawei and our country's chip industry.
In 2022, Huawei not only stopped losses in the siege but also achieved profit growth. The person in charge of Huawei said that it is expected that the sales revenue in 2022 will reach 636.9 billion yuan, the dividend to shareholders will reach 62.5 billion yuan, and the average dividend per person will exceed 640,000 yuan.
In our country's traditional chip field, as of 2021, among the 20 fastest-growing chip companies in the world, 19 are from the Chinese market. In the storage chip field, Yangtze River Storage has become the leader in the industry. In the high-end chip field, MediaTek has caught up. In the CPU processor field, our country's independently developed Loongson 3A6000 processor has reached the performance level of the 11th generation of Intel Core.In the field of photonic chip technology, recently, the Chinese Academy of Sciences announced that our country has broken through the 3nm photonic chip technology. It is expected that the first industrial chain will be launched in China in 2023, and in the future, our country may become the world's first mature producer of photonic chips.
In the field of quantum chip technology, China's first quantum chip production line has been officially completed in Hefei. On this production line, the production of Wukong quantum chips has been realized.
From this, we can see that the control of our country's chip industry by the United States, of course, there is pain, but overall, the more suppression, the stronger we are.
As for the United States, the current government debt has reached the limit of $31.4 trillion, facing the risk of debt default. Coupled with the current "Chips Act", the United States is facing internal and external troubles, and the old United States is really embarrassed now.