According to the latest news report, the global top 100 listed semiconductor companies, the total market value of 13 trillion yuan, especially the top ten semiconductor companies, the loss is 80%, AMD fell the most, a full 58%, followed by Nvidia fell 54%, 49%, Qualcomm fell 47%. Qualcomm's market value shrank by roughly 100.3 billion dollars, equivalent to 723.6 billion yuan. Finally, Samsung and Hynix of South Korea also fell sharply, and ASMPT of Singapore also fell by 45%, which can be said to be nearly equal to the famous semiconductor companies. All of them suffered a collective decline. It means the global semiconductor industry is suffering.
Naturally, the declining demand in the global semiconductor market has also impacted the revenue of numerous enterprises, and everyone has delivered disastrous results. For example, Intel's revenue in the second quarter fell by 17% year-on-year, which can be said to directly hit a record high, as serious as the US inflation data, and hit the highest point in 40 years. According to the calculation of experts, the net loss of Intel reached 500 million dollars, which was the largest loss in almost 30 years. However, it was far from over, because the third quarter of Intel became worse, the revenue was down 20% year-on-year, and the net profit directly plummeted 85% year-on-year, which is believed to be the reason why Intel chose to make huge layoffs in this critical period. The idea is to reduce the pressure on companies by cutting costs. Here we have 3549H-1AC-502A.
In the third quarter, Samsung made an operating profit of 10.8 trillion won, but it fell by 32% year-on-year. Its revenue was considerably lower than the market expected. For this reason, although Samsung's market share in China is less than 1%, Samsung still does not want to give up the Chinese market. In addition, TSMC is better than Samsung, but broadly speaking, it can't get rid of the fate of decline. Although TSMC is still profitable in the third quarter, the reason why it has such a result is that TSMC has considerably reduced expenses. I believe this is the reason why Intel has to lay off a large number of people. It can be said that the whole market has become unusually bad, and the stock market naturally has no confidence in these technology companies, and the stock market naturally began to collapse.
Then what's causing the global semiconductor market to slump? Why are the world's chip giants losing so often?
In fact, there are two main reasons. On the one hand, the demand for consumer electronics continues to decline. Although all kinds of industries need the support of various kinds of chips, the enterprises that have the demand for high-end chips are still mainly consumer electronics, such as mobile phones, storage, communication, imaging and other industries. People's income also began to be affected to a certain extent, so naturally in the consumer sector lost strong support, consumer electronics demand also began to decline, naturally chip is not very huge demand.
According to statistics, the global computer shipment in the first three quarters of 2022 was only 68 million units, a year-on-year decline of 19.5%, which is also a record high. Especially if the decline continues, we don't know whether fewer people will buy computers in the future. But one thing is certain: if the epidemic does not get better, people's earning power is going to be lower and lower, which means it's not that people aren't buying computers, it's that they're making less money and they don't have money to spend on computers or other consumer electronics.
In fact, not only the computer shipment decreased, but also mobile phone shipment decreased by 9% in the first three quarters of 2022 compared with the same period last year. In particular, the sales volume of Huawei, which does not have 5G chips, could not be included in the list. Additional domestic mobile phones, as well as Apple and Samsung, nearly all saw a collective decline. However, the market performance is not as excellent as that of previous generations of products, and it is precisely because of this that Apple has lost roughly 700 billion US dollars in market value, equivalent to 5 trillion yuan.
On the other hand, the main reason why the US semiconductor is suffering is the loss of China, a huge customer. We all understand that the US is imposing sanctions on chips. Who is the target of the sanctions? I don't think we need to say further about this. For this reason, on the one hand, the US does not allow us to buy top-end chips from them, resulting in heavy revenue losses for numerous chip giants in the US. On the other hand, major breakthroughs have been made in our chip industry, and numerous chips can be produced entirely domestically, which means that there is no need for support from the US chip production capacity. They're not going to buy additional chips in bulk, so they're going to sell fewer chips in the U.S. and that's going to hurt their revenue and that's going to hurt their stock prices, and they're going to crash.
However, at such a difficult time, the United States is still carrying out the chip act and chip sanctions. It can be claimed that all this is self-inflicted by the United States. The total market value of the global semiconductor market has been wiped out by 13 trillion yuan, and the United States chip giants have suffered heavy losses. It will be intriguing to see if future U.S. semiconductors will be the victims of the Great Power Game.