Domestic semiconductor companies have recently announced their 2019 semi-annual reports, including design, IDM, packaging and testing, materials, and equipment companies, such as GigaDevice, Silan Micro, Jiangfeng Electronics, NAURA Technology, Changchuan Technology, JCET, Huatian Technology, and Tongfu Microelectronics.
The reports show that most companies have experienced varying degrees of decline in net profit. The main reasons include:
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Market demand slowdown: The global semiconductor market experienced a cyclical downturn in 2019, with weak demand in downstream applications such as smartphones and PCs.
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Intensified competition: As more domestic companies enter the market, competition has intensified, leading to price pressure.
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Increased R&D investment: Companies have increased R&D investment to maintain technological competitiveness, leading to higher costs.
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Trade friction impact: The Sino-US trade friction has had a certain impact on the semiconductor industry chain.
