We must grasp the typical characteristics of the global chip industry chain.

To sum it up in one sentence, the essence of the global chip industry chain is a huge inverted pyramid.

The sharpest bottom layer of this inverted pyramid is EDA, which is an electronic automation design tool.

Most people should be very unfamiliar with EDA, let me explain it briefly.

Its role is to design billions of transistors on an area the size of a fingernail.

Obviously, this work cannot be done by relying on the human brain and hands.

This must rely on EDA design tools, which involve complex computer instruction architectures beyond the comprehension of all of us ordinary people.

Its market size is about 10 billion US dollars.

Based on this, from top to bottom, in order:

Chip design: that is, to design chip drawings.

Its market size is about 250 billion US dollars.

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

Its market size exceeds US$500 billion.

Chip application: Finally, it is the mobile phone, computer, network, etc. that we are familiar with.

Its market size exceeds 10 trillion.

From this, we can easily find that:

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

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

They are all derivatives of the Constitution.

It can be seen that the EDA tool is a very strong lever.

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

The leverage ratio is as high as thousands of times.

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

In the global chip industry chain, on this inverted pyramid.

The United States controls the core design and algorithm.

The three major U.S. EDA overlords - Synopsys, Cadence and MentorGraphics have monopolized 95% of China's EDA market.

Japan masters cutting-edge manufacturing processes.

China and South Korea have an absolute advantage in production capacity.

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

To sum it up in one sentence. in a state of equilibrium. Has been deeply bound, it can be said that no one can do without someone