Drop 356 billion yuan! U.S. trillion chip giant, defeated

Recently, the latest financial report disclosed by Intel shows that in the second quarter of 2020, its revenue will reach 19.7 billion US dollars, a year-on-year increase of 20%, setting a new record of single quarter revenue. At the same time, the net profit reached 5.1 billion U.S. dollars, a year-on-year increase of 22%, and the gross profit rate remained high, reaching 53.3%. < p > < p > in the first half of 2020, Intel achieved revenue of $39.6 billion, a year-on-year increase of 24.7%, and a year-on-year increase of 32% in net profit to $10.8 billion. In terms of performance growth alone, Intel achieved its biggest breakthrough in nearly a decade after 2011. < p > < p > Intel disclosed that its 7Nm CPU chip, originally scheduled for 2021, will be delayed by six months, while the yield problem of mass production will be 12 months behind schedule, and it plans to outsource some high-end chip manufacturing business. < p > < p > on the day of financial report release, Intel’s stock price plummeted by 16.2% in a single day, and its market value evaporated by 50.87 billion US dollars in the past 11 trading days, the biggest drop in nearly four months. However, on the same day, shares of AMD and TSMC, Intel’s main competitors, soared, with AMD up 16.50% and TSMC up 9.69%. < p > < p > according to media reports in Taiwan, Intel has ordered 180000 6nm chips to be produced in 2021 from TSMC, and the advanced process capacity of the latter has been scheduled for the first half of 2021. < p > < p > in fact, in recent years, the voice of Intel has been singing down for a long time. With the bad news of the delay of 7Nm chip, Intel’s failure in the chip field has been determined. Analysts on Wall Street are very pessimistic: TSMC has replaced Intel as the absolute center of the $400 billion chip manufacturing field, and the US chip era is over. < p > < p > Intel had previously planned that the 7Nm chip should be available in 2021. But now, it won’t be on the market until the second half of 2022 or early 2023. In contrast, amd released its desktop CPU based on TSMC’s 7Nm process as early as 2018. That is to say, at least until AMD’s 7Nm CPU is sold in the fourth year, the 7Nm CPU made by Intel will be available. < / P > < p > considering that SMIC can mass produce nearly 7Nm n + 1 process by the end of 2020, and Goldman Sachs estimates that SMIC will upgrade to 7Nm process in 2022. In other words, in terms of advanced manufacturing process, Intel will not only be far behind its leading competitors, but also be surpassed by China’s rising stars. < / P > < p > in short, Intel has lost its leading position in the global semiconductor industry, and the gap will be widening. In the face of this serious problem, no matter how beautiful the financial data are, the future is bleak. < p > < p > a senior person in the semiconductor industry pointed out that Intel’s 10nm has been delayed again and again, and the 7Nm delay can be expected, and may have to be delayed. There are two main reasons for the delay of Intel 7Nm. One is that the yield is not good, and the main problem behind is poor execution; the other is that 10nm cannot be optimized for high frequency. < / P > < p > in contrast, the stock price and market value of NVIDIA have reached new highs recently. Intel’s old rival amd used the 7Nm chip produced by TSMC as early as 2018, and has been scrambling for Intel’s market share. NVIDIA is an outstanding player in the field of AI chips, and has entered the hinterland of Intel in the data center market. Facing the cruel reality, Intel has to turn to TSMC for help. < p > < p > just three days after the announcement that the 7Nm chip had been delayed, Intel’s chief engineer and President, renduchintala, announced his resignation, and Intel reorganized its technology team. < / P > < p > according to this industry chain, the global chip giants mainly have two sets of methods: one is to take the whole industry chain of chip design and manufacturing; the other is to focus on a single subdivision field and outsource other links, which is called vertical division of labor mode. < p > < p > among them, since its establishment 50 years ago, Intel has always adhered to the two pronged approach of chip design and manufacturing, with strong business strength covering the entire industry chain. < p > < p > since the 1990s, NVIDIA, AMD and other enterprises have been forced to divest chip manufacturing business and concentrate on design due to cost pressure. This mode is also adopted by Huawei Hisilicon in China. Today, facing the dilemma of backward manufacturing technology, Intel, which has persisted for more than 50 years, is about to give up the IDM mode of taking the whole industry chain as a whole. < p > < p > in the latest financial report conference call, Intel disclosed that it may outsource some high-end chip production. Previously, Intel chief financial officer George Davis publicly admitted that Intel had fallen behind its rival TSMC, and it would take at least two years to catch up. In addition, according to Taiwan, Intel has reached an agreement with TSMC, which will contract 180000 6nm wafers for TSMC in 2021. < p > < p > Guoxin Securities pointed out that Intel’s choice of TSMC OEM is the abandonment of & quot; suicidal & quot; in the future. Once it starts to find a third-party contractor, Intel’s IDM mode of designing, manufacturing, packaging and testing to selling its own brand IC will be broken and it will be difficult to go back. < / P > < p > if Intel completely abandons chip manufacturing, then the United States will completely lose one of the core forces to resist other countries. In June, the semiconductor industry association of the United States released a report called “the US’s serious dependence on Asian suppliers in chip manufacturing is the weakness of the United States in this industry. In the long run, Chinese mainland is going to build more than 60 new Fabs by subsidizing, and will become the biggest chip manufacturing country in the world in 2030. This is very unfavorable for us. < / P > < p > this may lead to the loss of China’s market share by the United States and further growth of China’s own market share. As a result, the United States will need a lot of public and private investment.

currently accounts for only 12% of the semiconductor manufacturing capacity in the world. Compared to China, Taiwan has 50% of the total volume of the semiconductor manufacturing industry. The Chinese mainland has no advanced chip manufacturing technology, but with a large scale of chip manufacturing, it also won 17% of the global share in 2019 and surpassed the us. < / P > < p > it is worth mentioning that on the eve of Intel’s appeal to TSMC, the United States has successfully forced TSMC to build a US $12 billion plant in Arizona. However, with Intel’s submission to TSMC, the top leader in chip manufacturing in the United States has fallen into disuse, and the advantage of the United States in the field of chip manufacturing may start to decline in the future. American companies begin to give up R & D: who should pay for corporate research?