Hello everyone, today let’s talk about the localization of analog chips: a hard battle we must fight!
To put it simply, chips are like the rice we eat every day, with foreign brands dominating the market, and our own production is still insufficient. Especially for analog chips, which are the “electronic staple food”; without them, smartphones, cars, and home appliances cannot function.
Why is there an urgent need for localization now?
1. The Americans are tightening the noose: The U.S. frequently cuts off supplies, putting us in a passive position. Just look at Huawei’s sanctions; once the chip supply is cut off, they can’t produce smartphones.
2. Price gouging: Foreign chips are becoming increasingly expensive, making our chip purchases feel like buying luxury goods.
3. Security concerns: Using chips from others always raises doubts; who knows if there are “backdoors” inside?
What advantages do we have?
Large market: The domestic market is worth 300 billion a year, with 80% currently captured by foreign companies.
Supportive policies: The government is providing various subsidies, tax reductions, and green lights for development.
Relatively low technical barriers: Unlike mobile processors, which are difficult to develop, analog chips use mature processes.
However, there are also many real challenges:
Insufficient technical accumulation: Texas Instruments has been in the game for 90 years, while we are just starting.
Lack of customer trust: Many manufacturers believe that “imported is better” and are reluctant to use domestic products.
Talent shortage: There are too few skilled professionals who truly understand the field, and salaries have skyrocketed.
Where are the opportunities?
New energy vehicles: Electric vehicles, popularized by Tesla, require many power management chips.
5G and the Internet of Things: Smart homes and industrial equipment require a large number of chips.
Trend of domestic substitution: More and more companies are willing to give domestic chips a chance.
To be honest,
Developing chips is a tough job that requires significant investment of money, time, and talent. But no matter how difficult it is, we must do it; we can’t always rely on others for our sustenance, can we?
Now the government is pushing, and companies are following. What we ordinary people can do is to give domestic chips a bit more patience and support. Who knows, in a few years, we might have our own “Texas Instruments”!
The above views are for sharing only. What do you think? Feel free to leave comments in the discussion area to exchange ideas and explore more insights, and to gain more investment advice and interaction opportunities! (Data and information are sourced from public channels and are for illustrative purposes only, not to be considered as recommendations, and are for reference only.)
References
Huazheng Securities: The origin of semiconductor production will be recognized by “tape-out location”, accelerating the localization process of analog chips.
Guoxin Securities: With mutual tariffs between China and the U.S., we are optimistic about the acceleration of domestic analog chip substitution.
Chengtong Securities: In the context of trade friction, we focus on investment opportunities in domestic analog chips.
Huaxi Securities: Analog chips and distribution, significant opportunities under U.S. tariffs.
Kaiyuan Securities: The implementation of tariff countermeasures is expected to accelerate the localization process of analog chips.
[Risk Warning] The market has risks, and investment requires caution. This article is compiled by Ma Huigen S0300622030006. The content herein is for reference use by clients of Guangdong Kaiyuan Securities Co., Ltd. Shantou Branch only, and does not constitute investment advice or commitment. Our company or the author does not guarantee any form of investment returns or principal protection. Investors should not rely solely on this information for decision-making. The data or information mentioned is sourced from public disclosures, and our company or the author strives for accuracy and reliability but does not guarantee its accuracy, completeness, or timeliness, nor do we assume any legal responsibility for any consequences or losses arising from the use of this information.