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We must capture the typical characteristics of the global chip industry chain.

To sum 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 unfamiliar with EDA, so please explain briefly.

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

Obviously, this work cannot be done with the human brain and hands.

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

The market size is approximately $10 billion.

Based on this, from top to bottom, the order is:

Chip design: that is, to design the chip drawings.

The market size is approximately $250 billion.

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

Its market size exceeds $500 billion.

Chip applications: Finally, we are familiar with mobile phones, computers, networks, etc.

Its market size exceeds 10 trillion.

From this, it is not difficult to find:

EDA design, despite its small scale, 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 fabrication.

They are nothing more than derivatives of the "Constitution".

As you can see, the EDA tool is an extremely powerful lever.

Looking at the global industrial chain structure, there is no such a small market yet. EDA is about 10 billion US dollars, which can leverage such a huge industry scale. The entire chip industry chain exceeds about 10 trillion US dollars.

Leverage up to thousands of times.

This is the real "give me a fulcrum and I'll move the world."

In the global chip industry chain, this inverted pyramid.

The United States controls the core design and algorithm.

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

Japan controls cutting-edge manufacturing.

China and South Korea have absolute advantages in production capacity.

Among them, the silicon wafer production capacity in mainland China will account for 17.15% of the global production capacity in 2022.

Summarize in one sentence. in an equilibrium state. It has been deeply bound, it can be said that no one can do without one