The shock of $1500: The era of huge profits comes to an end
Starting from the second half of 2025, the global mature process market will be impacted. Led by SMIC, Chinese foundries have directly lowered the price of 28 nanometer wafers from $2500 to $1500, a drop of up to 40%. This move instantly broke through the defense of the Western camp, which is accustomed to high gross margins.
As a result, the capacity utilization rate of Taiwanese OEM factories fell below 70%, Samsung lost orders, and ASML's stock price plummeted in response. For a long time, Western companies have regarded semiconductors as a tool for reaping huge profits, while Chinese companies have reduced them to the essence of industrial products through economies of scale. European and American countries have reacted strongly to this, and in January 2026, the US even signed an executive order attempting to build trade barriers by imposing a 25% tariff.
Boomerang effect: the 'production monster' under sanctions
Ironically, the current situation is the result of US sanctions. Since the United States attempted to block advanced processes in 2022, the Chinese semiconductor industry has been forced to adopt a "saturation survival strategy": since high-end technology is blocked, it will strive to the extreme in mature processes.
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Enterprise surge:The number of domestic chip design companies in China has skyrocketed to over 3400, exceeding the sum of other regions in the world.
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Capacity explosion:SMIC is fully operational in Beijing, Shanghai, Tianjin and other places, with a monthly production capacity exceeding 800000 pieces.
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Share increase:Data shows that China's global share in mature processes is expected to soar from 12% in 2023 to 30% in 2025.
The once "neck binding" has evolved into the "rolled up pants legs" of European and American companies. This kind of exclusion and oppression has forced the full industry chain to become autonomous, forming an uncontrollable industrial giant.
Reshaping Order: Mastering the Global Industrial Lifeline
According to data from January 2026, China's chip exports have exceeded the $200 billion mark. These cost-effective chips are being widely installed in the fields of new energy vehicles, home appliances, and industrial control.
For the global manufacturing industry, chips not only need to be "advanced", but also "stable and inexpensive". China, with its most complete supply chain, has surpassed technological superstition in terms of industrial chain security. Despite Trump's attempts to block trade through tariffs, the market has given an answer: terminal manufacturers in Southeast Asia and Europe are accelerating their shift towards the Chinese supply chain.
Conclusion:Not all devices require 3 nanometers. Mastering mature processes is equivalent to holding the throat of global industry. The lament of European and American giants heralds the collapse of the old monopoly model of financial capital; The new industrial order written by Made in China, which pursues ultimate efficiency, is accelerating its formation globally.
