First of all, mobile phone chips are the most integrated components on the planet, which require huge costs and a very long research and development cycle. "The chip industry starts with RMB 1 billion and achieves results in 10 years." Once a chip is developed, it will take at least tens of millions of units to be sold to recover the cost.

Chip manufacturing is a very high-consumption industry. Few chip companies in China and around the world can see that the threshold for getting involved in the chip industry is very high. At present, in my opinion, the only company in China that can support chip development is Huawei. Because Huawei started in the mobile phone industry, it has a certain foundation. And Huawei is very rich. Alibaba's revenue last year was 4/1 of Huawei's, and Xiaomi and ZTE's revenue was 6/1 of Huawei's.

First of all, in terms of products, Huawei’s top chip is currently the Kirin 970, which is about one and a half generations behind Qualcomm’s current best chip, the Snapdragon 845. If Kirin 970 was released half a year earlier, it would be one generation behind. . Although there is still a generation gap, we can basically compete - this is the most basic argument. If you have similar products, you will be competitive.

GigaDevice Innovation. This company is currently the leader in the domestic chip design industry. It has certain connections with Huawei, ZTE, and the Chinese Academy of Sciences. It also has the participation of the Integrated Circuit Industry Fund. It is very likely to become a leading listed chip company with a market value of hundreds of billions.

Changdian Technology. Chip design companies are in the upstream of the industry chain, and packaging is in the downstream. A simple understanding is that they do rough work in this industry, but if they can do the rough work well, they can also become an oligarch. It is worth looking forward to after the big money takes over.