Following ZTE, the US Department of Commerce recently listed Huawei as a physical list to prohibit Huawei from purchasing US company chips and software. This has already been raging. Huawei has prepared for the June-December inventory, leaving some Buffer time.
In terms of semiconductor chips, everyone knows that American companies are strong. Many IT companies in China rely on American companies' chips, but on the other hand, China is also the most important semiconductor market in the world. Relying on the Chinese market, both sides lose their glory.
As early as two years ago, the US quatz website published an article that counted the dependence of American semiconductor industry companies on the Chinese market. Among them, 80% of the RF manufacturer Skyworks received revenue from the Chinese market. 61% of the company's revenue comes from the Chinese market. Broadcom, Micron, and NVIDIA have 55%, 55%, and 54% of their revenues from the Chinese market. Anwarco's 49% of revenue is also from China. Semiconductor equipment manufacturers use AM materials. 48% of the revenue depends on China, and other companies such as TI, SanDisk, LAM, and Intel also have 30-40% of their revenues to support the Chinese market.
Although this data is in 2016, the semiconductor market is still growing rapidly in the past two years, and revenue from the Chinese market will only be much less. This is also the reason why the stock prices of many companies in the US semiconductor industry company plummeted after the US announced the sanctions against Huawei yesterday.
Yesterday, NeoPhotonic plunged 20.63%. They are Huawei's optical component suppliers. This plunge created the largest record in four years, while another optical component supplier Lumentum also fell 11.54%, a six-month period. The biggest drop.
In addition, Qualcomm, a supplier of Huawei modulation regulator chips, also fell 4% on the day. Shares of Huawei's communications chip suppliers Skyworks, Qorvo and Xilinx fell 6.06%, 7.14% and 7.27%, respectively.
Wang Xinzhe, chief economist of the Ministry of Industry and Information Technology, said at the World Semiconductor Conference that in 2018, the scale of the IC market in China has reached 1.6 trillion yuan, accounting for nearly 50% of the global market share, and sales revenue exceeded 653.2 billion yuan, of which foreign investment Companies contribute more than 30% of the scale.