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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 new to EDA, just explain it briefly.

Its function is to design billions of transistors in an area the size of a fingernail.

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

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

Its market size is approximately US$10 billion.

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

Chip design: that is, designing chip drawings.

Its market size is approximately US$250 billion.

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

Its market size exceeds 500 billion U.S. dollars.

Chip application: Finally, it is the cell phone, computer, network, etc. as we know it.

Its market size exceeds 10 trillion.

From this, it is not difficult for us to find:

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 just derivatives of the "Constitution."

It can be seen that EDA tools are 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. It can leverage such a huge industry 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, this inverted pyramid.

American control core design and algorithm.

The three major EDA hegemons in the United States-Synopsys, Cadence and MentorGraphics have monopolized 95% of the EDA market in China.

Japan controls cutting-edge manufacturing processes.

China and South Korea have absolute advantages in production capacity.

Among them, China's wafer production capacity will account for 17.15% of global production capacity in 2022.

Summarize one sentence. In an equilibrium state. Has been deeply bound, it can be said that no one can do without anyone