Electronics

According to Huacheng Import and Export Data Observation, due to the contraction of the Chinese market, the export volume of chips from the United States is also continuously decreasing, and even facing the dilemma of "no one buying" chips, which has attracted widespread attention from the outside world. At the same time, the Korean chip industry has gone through a difficult period in recent years, with inventory backlog becoming a serious problem, and the importance of the Chinese market becoming increasingly prominent.

According to Huacheng Import and Export Data Observation, the United States has been in a net export state of integrated circuits from 2015 to 2021, with exports reaching $52.817 billion and net exports reaching $11.566 billion in 2021. In 2021, the import and export volume of integrated circuits in the United States reached a historic high, with net exports increasing by 148.78% compared to 2015.

However, as China gradually becomes one of the world's largest chip purchasing countries, it significantly reduced its import volume of 67 billion chips in the first two months of this year, which has had a profound impact on the global chip market. Among them, the United States itself has also been affected. Due to the contraction of the Chinese market, the export volume of American chips is also declining, and even faces the dilemma of "no one cares" for chips. This situation has attracted widespread attention from the outside world, with some foreign media commenting that it is the result of the United States' self inflicted actions.

Analysis suggests that there are many reasons why China has significantly reduced chip imports. On the one hand, due to the impact of the global epidemic, procurement efforts will naturally weaken. In addition, with the rapid development of China's domestic chip industry, the supply capacity of chips in China has significantly increased, and some chip products have also begun to be self-sufficient. In addition, China has taken a series of policy measures to encourage local enterprises to increase investment in chip research and development, improving the independent innovation ability of the chip industry. These policy measures have also to some extent promoted the development of the local chip industry, as reported by Huacheng Import and Export Data Observation.

Against this backdrop, the demand for chip procurement in China is clearly no longer as urgent as before. For American chip companies, the Chinese market has always been an important export destination, and due to the contraction of the Chinese market, the export volume of American chip companies is also continuously decreasing. In fact, as China becomes one of the world's largest chip purchasing countries, the Chinese market is an extremely important market for global chip companies, and no company wants to lose such market share. Therefore, the decrease in China's procurement volume is a major challenge for global chip companies, as reported by Huacheng Import and Export Data Observation.

However, the situation affecting American chip companies is even more severe. In the past few years, the US government has implemented a series of restrictive measures against China, preventing Chinese companies from purchasing chip products in the US market. These measures are clearly aimed at protecting the interests of the domestic chip industry in the United States, but when the Chinese market reduces procurement, the sales of American chip companies will be severely affected.

Therefore, foreign media pointed out that the United States' own policy measures have actually exacerbated the difficulties of American chip companies to some extent. If the United States did not take these restrictive measures against China, the Chinese chip market may remain stable, and the export volume of American chip companies would not be so greatly affected.

On the other hand, the latest news recently shows that South Korean chips are unsold, with inventory backlog reaching a 26 year high. The Korean chip industry has gone through a difficult period in recent years, and the problem of inventory backlog has become a serious problem. At the same time, the importance of the Chinese market is becoming increasingly prominent.

In the face of increasingly fierce global competition, Korean chip companies still rely too heavily on the US market and overlook the potential of the Chinese market. This strategy of relying on a single market has made it difficult for South Korean chip companies to sustain growth in their export volume, and even led to inventory backlog, as reported by Huacheng Import and Export Data Observation.

In fact, China has become one of the world's largest chip consumers. China is a market full of opportunities for Korean chip companies. Although China has made significant progress in its domestic chip industry, there is still a huge market demand, which provides opportunities for Korean chip companies.

In addition, Korean chip companies have realized that dependence on the Chinese market is an inevitable trend. Korean chip companies have begun to take measures to strengthen cooperation with Chinese companies to enhance the competitiveness of local chips and actively expand their market share in China.