Скачать или смотреть Why Are More and More Chinese Chip Companies Gaining Market Share ？

Why Are More and More Chinese Chip Companies Gaining Market Share? How Are They Surpassing Foreign Competitors and Breaking the Western Monopoly?
In today's global wave of technological innovation, the importance of chips—often called the "jewels in the crown" of modern industry—is self-evident. From smartphones and supercomputers to self-driving cars and AI devices, chips are everywhere, supporting the functioning of modern society. For a long time, however, the global chip market has been dominated by Western giants from Europe and the U.S. Their advanced technology, massive funding, and mature supply chains have built what seemed to be an insurmountable barrier.
Recently, a piece of news has sent shockwaves through the global chip industry: a growing number of Chinese chip companies are rapidly seizing market share, even surpassing their foreign rivals. How is this happening? In the face of intense technological containment from the U.S. and the West, how are Chinese chip companies managing to rise against the odds? Let's delve into the story behind this phenomenon.

I. The Rise of Chinese Chip Companies
1. SMIC's Impressive Performance
SMIC (Semiconductor Manufacturing International Corporation), a leader in China's chip manufacturing sector, has been attracting significant attention with its every move. In the second quarter of 2025, SMIC delivered a remarkable report card: a total sales revenue of $2.209 billion, representing a 16.2% year-on-year increase; a gross profit margin of 20.4%; and a capacity utilization rate of 92.5%, an increase of 2.9 percentage points quarter-on-quarter. The company even predicts a modest 5-7% quarter-on-quarter revenue growth for the third quarter. Such results are particularly impressive given the increasingly fierce competition in the global chip market.
During an earnings call, SMIC's co-CEO, Zhao Haijun, revealed that due to a steady increase in demand from Chinese customers, the company's wafer supply shortage is expected to last until at least October. He also specifically noted that some domestic clients, especially in the power semiconductor sector, have increased their wafer orders from SMIC tenfold in just two years. This data clearly demonstrates the strong