China Cancels Chip Orders, Deals $ Blow to US Chip Giants, SMIC Emerges Victorious.

According to customs data, in the first quarter of 2023, the domestic import of chips was 108.2 billion, a decrease of 32.1 billion from the previous year. Coupled with the cumulative reduction of 97 billion in 2022, the total is 129.1 billion. Some foreign media have pointed out: “SMIC is the big winner!“ Since the second quarter of 2021, China has begun to reduce the import of chips. In the first quarter of 2022, the import of chips decreased by 21%. This trend directly affected the chip industry in the United States and TSMC. After losing the Chinese market, US companies face huge economic losses and can only maintain normal operations through layoffs. China is one of the largest chip procurement countries in the world, consuming over 70% of global chip shares. Reducing chip imports affects the production and exports of US chip manufacturers, leading to a significant compression of the US chip manufacturers’ market share and profit. For TSMC, although the reduction in Chinese imports will not directly affect its business, if the chip purchases of other countries also decrease, it will lead to a reduction in the global chip market supply, which will in turn affect TSMC’s customer demand and revenue. If the United States continues to take export control measures against China, TSMC’s days are also destined to be difficult.