Electrical Equipment / Components & Telecoms

According to the observation report of Huacheng Import and Export Data, American semiconductor enterprises generally reported dismal results, with a significant decline in revenue and profits. Analysts generally believe that the US export control on China in the semiconductor field is one of the important reasons for the poor performance of enterprises.

For some time, the United States abused export control measures to restrict the export of semiconductor related items to China. These measures have a certain impact on China's semiconductor industry, but also hit global semiconductor enterprises, including American enterprises, hard, Huacheng Import and Export Data Observation reported.

The third quarter financial report released by Intel recently showed that in addition to a 20% year-on-year drop in revenue, it also paid an additional 664 million dollars due to cost reduction measures such as layoffs. Nvidia, the chip design company, expects to lose $400 million in revenue this quarter due to these controls. The semiconductor equipment supplier Fanlin Group expects that the relevant measures will cause the company to lose revenue of 2 billion to 2.5 billion dollars in 2023, Huacheng Import and Export Data Observation reported.

In May, Micron Technology also introduced its long-term strong demand for memory chips to investors, but the following month warned that demand and prices would decline.

According to the Huacheng Import and Export Data Observation Report, since July, about 30 large semiconductor enterprises in the United States have lowered their total estimated revenue in the third quarter from $99 billion to $88 billion, and are generally pessimistic about their expectations for next year.

So far, the total market value of semiconductor enterprises listed in the United States has decreased by at least 1.5 trillion dollars this year. The share price of AMD, an American semiconductor giant, has dropped by nearly 60% so far this year, and Nvidia and many other companies have dropped by about 50%.

Analysts generally believe that the US restrictions on exports of semiconductor related items to China are a "boomerang". In the medium and long term, this will not only lead to the decline of the US semiconductor industry, but may also lead to the loss of China, a huge market.

Doug Bettinger, the chief financial officer of Fanlin Group, said at the quarterly report conference that the company had lost some very important customers in China, "and this situation will continue".

David Goldman, an American economist, wrote that the US export control on the semiconductor industry to China will cause damage to the capital investment and R&D activities of the western semiconductor industry five times or more than the moderate subsidies provided by Washington for the semiconductor industry.

Scott Foster, an analyst at the Japanese "Optical Flow" Research Company, said that, in terms of stock price performance and investor returns, the impact of the relevant actions of the United States government on American enterprises and enterprises in other countries is intensifying the already serious industry recession.

The semiconductor industry is the product of global cooperation. The relevant practices of the US side deviate from the principle of fair competition and violate international economic and trade rules, which not only damage the legitimate rights and interests of Chinese enterprises, but also seriously affect the interests of American enterprises, hinder international scientific and technological exchanges and economic and trade cooperation, and have an impact on the stability of the global industrial chain supply chain and the recovery of the world economy. Huacheng Import and Export Data Observation Report.

Once American semiconductor enterprises lose their profits from the Chinese market, their overall revenue will be greatly affected, which will lead to the reduction of R&D investment, and ultimately shake their leading position in the market. At present, under the strong promotion of the U.S. government, enterprises that are investing heavily in expanding semiconductor production facilities in the United States will also face the risk of "producing chips but not selling them".