Core Insights - In July, profits of China's industrial enterprises above designated size fell by 1.5% year-on-year, a narrowing of the decline by 2.8 percentage points compared to June, marking two consecutive months of improvement [1] - From January to July, the profit decline was reduced by 0.1 percentage points compared to the first half of the year, indicating a continued recovery in corporate profitability [1] - The revenue of these enterprises grew by 0.9% year-on-year in July, and by 2.3% from January to July, creating favorable conditions for profit recovery [1] Group 1: Profit Trends - In July, the gross profit margin of industrial enterprises turned from a 1.3% decline in June to a 0.1% increase [1] - Manufacturing profits saw a significant increase of 6.8% year-on-year in July, accelerating by 5.4 percentage points compared to June, contributing to a faster overall profit growth for industrial enterprises [2] - The raw material manufacturing sector's profits shifted from a 5.0% decline in June to a 36.9% increase in July, with the steel and petroleum processing industries returning to profitability [1] Group 2: High-Tech Manufacturing - In July, profits in high-tech manufacturing shifted from a 0.9% decline in June to an 18.9% increase, significantly boosting the overall profit growth of industrial enterprises [2] - Specific sectors within the semiconductor industry experienced remarkable profit growth, with integrated circuit manufacturing up by 176.1%, semiconductor device manufacturing up by 104.5%, and semiconductor discrete device manufacturing up by 27.1% [2] Group 3: Enterprise Size and Type - Profits for medium and small-sized enterprises improved, with medium-sized enterprises seeing a turnaround from a 7.8% decline in June to a 1.8% increase in July, and small enterprises from a 9.7% decline to a 0.5% increase [2] - Private enterprises reported a 2.6% year-on-year profit increase in July, outperforming the average profit growth of all industrial enterprises by 4.1 percentage points [2]

Core Viewpoint - The article highlights the journey of Yin Zhiyao, a prominent figure in the semiconductor industry, who transitioned from Silicon Valley to lead a domestic company in China, contributing significantly to the country's semiconductor self-sufficiency and innovation [2][15]. Group 1: Historical Context and Contributions - In 1984, Yin Zhiyao joined Intel, where he made significant improvements in plasma etching technology, enhancing uniformity from ±15% to ±5%, which became an industry standard [5]. - Yin's move to Lam Research in 1986 marked a pivotal point in his career, where he led the development of the "Rainbow" project, resulting in the world's first etching machine capable of 0.5-micron processes, significantly increasing market share [6][8]. - The "Rainbow" project not only showcased the capabilities of Chinese engineers but also disrupted the semiconductor equipment market, proving that Eastern innovation could set global standards [8]. Group 2: Transition to Strategic Leadership - In 1991, Yin Zhiyao became Vice President at Applied Materials, where he transformed the company's etching business by focusing on customer needs and integrating equipment with process solutions, leading to a significant market share increase [10][12]. - His strategic shift towards customization and collaboration with major clients like Samsung and TSMC helped Applied Materials regain its competitive edge, with etching equipment market share rising to 42% by 2004 [12][13]. Group 3: Founding of Zhongwei Company - In 2004, at the age of 60, Yin Zhiyao returned to China to establish Zhongwei Company, focusing on domestic semiconductor equipment production amidst international technological barriers [15]. - Zhongwei's first dry etching machine launched in 2005 filled a critical gap in China's high-end semiconductor equipment market, challenging the dominance of Western firms [16]. - The company faced legal challenges from American firms but successfully built a supply chain that reduced reliance on U.S. components, demonstrating strategic foresight [17]. Group 4: Technological Advancements and Market Impact - By 2017, Zhongwei delivered its first 5nm etching machine, significantly advancing the capabilities of Chinese semiconductor manufacturers and contributing to a rise in domestic chip self-sufficiency from 5% in 2016 to 20% in 2023 [18]. - Zhongwei's innovations in etching technology have begun to dismantle the market monopolies held by major players like Lam Research and Applied Materials, fostering vertical integration within China's semiconductor industry [18]. Group 5: Philosophical Insights and Future Directions - The article concludes with reflections on the nature of technological advancement, emphasizing the importance of deep understanding and persistent effort in overcoming challenges in the semiconductor field [20][21]. - Yin Zhiyao's journey illustrates a broader narrative of China's technological evolution, highlighting the shift from dependency to self-reliance and innovation in the global semiconductor landscape [21].