Recently, the chip sector has reached a climax, with calls for domestic substitution growing louder.
Have you ever thought about the complete localization of chips? There is enormous market potential and strategic significance behind this.
There is a joke that in the past, Chinese electronics companies would go abroad to purchase chips as if they were shopping in a market, having to watch others’ faces. Once others cut off supply, they could only feel anxious. But now, the situation is changing.
• Current Status of Domestic Substitution: Currently, China has made certain progress in chip design, manufacturing, and other aspects.
For example, Huawei’s HiSilicon chips have reached world-class levels in design capabilities. However, in manufacturing, especially in high-end lithography machines, there is still a reliance on imports.
• Market Potential: With the development of emerging technologies such as 5G, artificial intelligence, and the Internet of Things, the demand for chips is experiencing explosive growth.
Domestic substitution can not only meet domestic market needs but also expand into international markets. Companies like SMIC are continuously increasing R&D investments to enhance manufacturing processes.
• Investment Opportunities: Within the chip sector, there are some “invisible champion” companies worth paying attention to.
They may have unique technological advantages in certain niche areas, such as a company leading in chip packaging and testing. Investors can explore potential investment opportunities by researching companies’ fundamentals, technological strength, and market share.
The domestic substitution of chips is a war without gunpowder, and it is an inevitable path for the rise of Chinese technology. For investors, seizing this opportunity may yield substantial returns.
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