Sou Hu Cai Jing·2026-01-03 15:48Core Viewpoint - The recent warning from major Western chip companies about the potential collapse of the global semiconductor industry due to Chinese companies' price cuts is primarily a self-serving tactic to protect their own market share rather than a genuine concern for the industry as a whole [3][6][30]. Group 1: Industry Impact - Chinese chip companies have significantly reduced prices, leading to a 35% revenue drop for Western firms and halving profits for some [6][8]. - The loss of orders from Western companies to Chinese firms is accelerating, indicating a shift in market dynamics [8][10]. - The claim that Chinese price cuts will destroy the global semiconductor industry is misleading; instead, it is expected to stimulate demand and expand the market [22][24]. Group 2: Competitive Advantages - Chinese chip manufacturers are able to lower prices due to a mature supply chain and effective cost control, allowing them to maintain profit margins even with reduced prices [10][18]. - Domestic companies like SMIC have achieved a high yield rate of 99.2%, significantly better than Intel's 85%, which contributes to lower production costs [12][14]. - The shift towards domestic equipment manufacturing has reduced reliance on expensive imports, further decreasing production costs for Chinese firms [16][18]. Group 3: Market Dynamics - The global semiconductor market is expected to grow by 12% in 2024 due to increased production capacity and lower prices from Chinese companies, contradicting claims of industry destruction [24][26]. - The competitive landscape is changing, with Chinese firms breaking the previous monopolies held by Western companies, which relied on technological dominance without considering cost efficiency [26][30]. - The future of the global chip market will depend on genuine competition and innovation rather than monopolistic practices [28][30].