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What is the pattern of the global chip industry chain?

From: Date:2022-6-22

It is necessary to grasp the typical characteristics of the global chip industry chain.

In a word, the essence of the global chip industry chain is a huge inverted pyramid.

The bottommost point of this inverted pyramid is EDA, an electronic automation design tool.

Most people should be very new to EDA, so please explain briefly.

Its function is to engineer billions of transistors in an area the size of a fingernail.

Obviously, this work cannot be done with the human brain and hands alone.

This has to rely on EDA design tools, which involve a complex architecture of computer instructions beyond the comprehension of all of us ordinary people.

Its market size is about $10 billion.

Based on this, from top to bottom, the order is:

Chip design: that is, the design of chip drawings.

Its market size is about $250 billion.

Chip manufacturing: such as packaging, testing, lithography equipment, etc.

Its market size exceeds $500 billion.

Chip application: Finally, we are familiar with mobile phones, computers, networks, etc.

Its market size exceeds 10 trillion.

From this, we can easily find:

Although the EDA design is small, it is the most fundamental "composition" in the entire chip industry chain.

Without EDA design tools, it is impossible to design chip drawings, let alone chip manufacturing.

They are nothing more than derivatives of the "Constitution".

It can be seen that the EDA tool is an extremely powerful lever.

Looking at the global industrial chain structure, there is no such a small market yet. EDA is about 10 billion US dollars, which can leverage such a huge industry scale. The entire chip industry chain exceeds about 10 trillion US dollars.

The leverage is thousands of times.

This is the real "give me a fulcrum and I can move the whole earth".

In the global chip industry chain, this inverted pyramid.

U.S. controls core design and algorithms.

The three major EDA hegemons in the United States - Synopsys, Cadence and MentorGraphics have monopolized 95% of China's EDA market.

Japan controls cutting-edge manufacturing processes.

China and South Korea have absolute advantages in production capacity.

Among them, the silicon wafer production capacity in mainland China will account for 17.15% of the global production capacity in 2022.

Summarize in one sentence. in equilibrium. Has been deeply bound, it can be said that no one can leave