In the first half of this year, China's chip exports reached as high as 542.7 billion, with a year-on-year growth of 25.6%, a phenomenon that has begun to ferment in the global chip market.

The latest financial data released by the US chip giant seems to have been severely affected, leading to a significant drop in stock prices. In just one trading day, the loss in market value, converted to RMB, amounted to 233.7 billion, which is almost half of China's chip export volume in the first half of the year.

What is the specific situation? Let's take a look together.

In the overnight US stock trading, Intel's stock price plummeted, with the maximum drop during the day approaching 30%, and it ultimately closed down by more than 26%, which is the largest single-day drop since 1982.

Overseas, the market value loss of 233.7 billion yuan is also the highest record in 42 years.

The direct cause of this sharp decline in stock price is that Intel's latest financial report was far from meeting market expectations, and the company announced measures such as large-scale layoffs and suspension of dividends.

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Intel's Q2 2024 financial report shows that the company's revenue was 12.83 billion US dollars, a year-on-year decrease of 1%, far below the market expectation of 12.95 billion US dollars.

The adjusted earnings per share (EPS) plummeted by 85% year-on-year, to only 0.02 US dollars, significantly lower than the expected 0.1 US dollars.

The gross profit margin also decreased year-on-year, to 38.7%, far below the analyst's expectation of 43.6%.In the breakdown of business segments, whether it is customer computing business, data center and AI business, or foundry business, none have met the expected targets, indicating that Intel's performance is comprehensively below expectations.

After the release of the financial report, Intel's management stated that the challenges faced by the company in the second half of the year are greater than anticipated, and the company is taking measures to improve operational and capital efficiency and accelerate transformation.

However, the market is pessimistic about Intel's future growth expectations, and several Wall Street institutions have collectively downgraded its ratings. S&P has also placed Intel's rating on a negative credit watch list.

At the same time, Intel announced a "comprehensive cost-cutting" plan, including layoffs of more than 15%, or about 15,000 people, marking the first time the company has taken such measures in 32 years.

In addition, Intel also announced the suspension of dividends starting from the fourth quarter, which will further put pressure on its stock price.

In stark contrast to Intel's predicament is the booming development of China's chip industry. Despite facing numerous restrictions in the international market and export controls from the United States, China's semiconductor industry has not stagnated but has achieved significant growth.

In the first half of 2024, China's integrated circuit export volume reached 542.7 billion yuan, a year-on-year increase of 25.6%, demonstrating the strong momentum and market competitiveness of China's chip industry.

The rapid growth of China's semiconductor industry is attributed to the effective advancement of domestic industry upgrades and the continuous expansion of market demand. Although still constrained in the high-end chip sector, China's development momentum in the mid-to-low-end chip market is robust, with the potential to gain a larger market share in this segment in the coming years.

This development trend will undoubtedly bring greater competitive pressure to overseas chip giants, including Intel.Many media outlets have excessively dramatized the importance of high-end chips. In fact, even chip giants like Intel, Samsung, and TSMC have more than 70% of their orders coming from mature process chips.

China's current chip development is not solely focused on conquering high-end chips. On the contrary, we first ensure that we do well with the chips we can produce, while continuously breaking through in high-end chip technology. As a result, our capacity in mature processes is increasing, and the economies of scale are becoming more pronounced.

This has directly led to the loss of monopolistic pricing power for overseas chip giants, and their monopolistic profits have also been significantly reduced. This can be seen from the substantial decline in profits in Intel's financial reports.

Now that our mature process chips have the advantage of cost-effectiveness, it is certain that in the future, we will be able to not only meet domestic demand but also export in large quantities to overseas markets. This will allow more countries to purchase our chips at normal prices, avoiding exploitation by European and American chip giants.