Shulou(Shulou.com)06/02 Report--

The sensational incident of "the United States issuing a rejection order to ZTE" ended with the temporary and partial lifting of the export ban by the US Department of Commerce. A few days later, another big thing happened in the chip market: Micron Technology, an American chip giant, ate an injunction from the Fujian Intermediate Court on suspicion of infringement. The consequences were also immediate-Micron's shares fell sharply that day, falling more than 6.3% in intraday trading and closing down 5.51%, leading the decline in the U. S. technology sector.

(picture from Sohu website)

According to the official website of Fujian Jinhua Integrated Circuit Co., Ltd., Fuzhou Intermediate people's Court today (July 3, 2018) ruled that Meguiar Semiconductor sales (Shanghai) Co., Ltd. immediately stopped selling and importing more than ten Crucial Ying Ruida solid-state drives, memory sticks and related chips, and deleted advertisements and purchase links about the above products from its website. At the same time, it was ruled that Micron Semiconductor (Xi'an) Co., Ltd. immediately stopped manufacturing, selling and importing several memory strips.

This news is undoubtedly a thunder for Micron Technology and even the American chip market.

The expansion and monopoly of Meguiar's science and technology in the past 20 years

As early as 1997, Meguiar Technology set up a factory in Taipei. At present, Meguiar has wafer manufacturing plants in Taoyuan and Taichung.

In July 2013, Micron completed its 100 per cent acquisition of Japan's Erpida and its 65 per cent stake in Taiwan's Ruijing Electronics for 200 billion yen. Prior to that, Micron had reached an agreement with Power Chip to acquire a 24 per cent stake in Ruijing, giving it a combined 89 per cent stake.

In December 2015, Micron bought its remaining 67 per cent stake in Taiwan's Huaya Technology for $3.2 billion. At this point, Huaya Technology has become a wholly owned subsidiary of Micron Technology.

The expanded Micron Technology has become a chip giant, and its power has been enough to influence the market. Currently, Samsung, Micron and Hynix together account for 96 per cent of the global DRAM chip market. Among them, Meguiar Technology accounts for 23%.

Average monthly selling price of DRAM from July 2016 to July 2017

(picture from China Industry Information Network)

Revenue growth of DRAM manufacturers since 2016

(picture from China Industry Information Network)

However, this American chip giant is an easy "playwright". Since 2000, it has been engaged in price monopoly in conjunction with Samsung, Hynix, Infineon and other companies, so it was sued by American consumers and finally closed the case with a fine of 731 million US dollars.

However, this time the sanctions did not let Meguiar "stop", this year, it is suspected of infringement caused by patent disputes with Fujian Jinhua. Given that Micron derives nearly 50 per cent of its revenue from China, it will inevitably be hit hard once some of its products are banned in China.

Acer plays a strategic and forward-looking role, and the policy blessing is like a tiger's wings.

In contrast, domestic chips sing all the way under the regulation and support of national policies.

Looking back to the source, before the US Department of Commerce issued a refusal order against ZTE, China's applied IT industry and mobile Internet had been thoroughly integrated into the global production chain with the help of the model of "mutual authorization and global cooperation", and the development situation was very good. However, after the ban, this mode of operation with no hard technology and no "core" was declared bankrupt, and people inside and outside the domestic industry woke up under this blow. Change begins with the national government.

According to statistics, at the beginning of the 21 century, the share of integrated circuits in China gradually broke through, and the industrial scale was as high as 100 billion yuan. In order to realize the comprehensive localization of semiconductors, China began to acquire a number of overseas semiconductor enterprises. The government and financial circles have begun to raise funds. although the international regulatory authorities are stringent and many M & A cases are intercepted midway, it is still unable to prevent China's integrated circuits from surpassing, and it is expected that the self-sufficiency rate will reach more than 70% by 2025.

In mid-May this year, the central government procurement network issued a relevant announcement, adding a "domestic chip server" to the relevant server product categories, including Godson CPU server, Feiteng CPU server and Shenwei CPU server.

As a leading independent brand server manufacturer in the industry, ASRock has seen the development potential of domestic chips in a forward-looking way. A rack server based on Shenwei 1610 multi-core processor is developed. The server adopts home-made Kunlun firmware (server version) and winning Kirin operating system (server version); supports up to 12 pluggable SATA hard drives; supports RAID 0 and 1ax 5; supports maximum 32GB memory; supports 4 PCI-E expansion slots; supports IPMI interface. The peak power consumption of the whole machine is less than 200W.

The Shenwei 1610 processor single chip used in the server is a domestic high-performance multi-core processor based on the second generation "Shenwei 64" core. Mainly for the requirements of high performance computing and server platform applications, using symmetrical multi-core architecture and SoC technology, a single chip integrates 16 Shenwei processor cores with 64-bit RISC architecture, four DDR3 memory controllers and two sets of PCI-E standard Imando interfaces. The highest operating frequency is 1.6GHz.

If the ZTE incident is a wake-up call for the domestic chip industry, then the injunction of the Fujian Intermediate Court is a beautiful backhand blow. The development of domestic chips has a long way to go, and the opponents and obstacles they are facing will be unprecedented, but we are pleased to see that the strong support of the national government, the massive investment of capital and the huge market demand need to be met urgently. I believe that under the concerted efforts of China's semiconductor industry chain, over time, domestic chips will eventually be able to occupy the forest of the world.

For more information, please visit http://www.enginetech.cn or call 400-779-6858.

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