Q1: China imported 2.2 billion less chips per day, 360 million chips, and the United States suffered heavy losses.

 

Recently, China Customs released data. From January to March 2023, China imported 108.2 billion chips, a year-on-year decrease of 32.1 billion (140.3 billion from January to March last year), a drop of 22.9%.

The amount of imported chips from January to March was US$78.5 billion, a year-on-year decrease of US$28.6 billion (about 200 billion yuan, compared with US$107.1 billion from January to March last year), a decline of 26.7%.

It means that during the 90 days from January to March, China reduced its imports of chips by 360 million chips per day compared with last year, and the amount of imported chips reduced by 2.2 billion yuan per day compared with the same period last year.

However, if China's chip import volume and import value have decreased so much, who will suffer the most? Of course it's America.

After all, the United States accounts for about 50% of the global chip market. The United States has always been a major chip exporter. Many chips in the United States are exported to the Chinese market.

For example, Intel, #AMD, #Qualcomm, Broadcom, #nvidia, Micron, etc., export a large number of chips to China. Once China reduces chip imports, the revenue of these companies will be greatly affected.

In fact, these facts can also be seen from the situation in the first quarter. Micron’s net loss in the first quarter was as high as 2.312 billion US dollars, which is also Micron’s worst record in 20 years.

#Intel expects revenue in the first quarter to be between US$10.5 billion and US$11.5 billion, far below market expectations of US$14 billion. In terms of profit, it is expected to continue to lose money in the first quarter.

In addition, the performance of manufacturers such as AMD and Qualcomm is also not good. Except nvidia relied on the popularity of #ChatGPT to save the dismal performance, almost all other American chip manufacturers did not perform well in the first quarter.

Of course, the performance of American chip companies is not good, and the performance of Chinese chip companies is not so good. After all, when the market is bad, few companies can truly cross the cycle, and everyone is mutual.

At present, whether it is Intel, Nvidia, or AMD and other manufacturers, they have launched some special-edition chips for the Chinese market, hoping to rely on China's huge market to save their performance.