$SMIC (00981.HK)$Influenced by short essays, Hong Kong stocks surged in the afternoon session. In fact, many people do not understand the significance of semiconductors. Today, let me give you a brief introduction. Here's the summary upfront: behind the chip competition lies the competition of the global industrial chain.
1. The Formation of the Global Supply Chain Structure
The wave of global outsourcing in American manufacturing began in the early 1960s. At that time, many large companies adopted a vertically integrated model, meaning they tried to handle everything from parts to final products themselves or procured components and services domestically. During this period, the rise of the environmental movement and steady growth in workers' wages led to a rapid increase in manufacturing costs in the U.S. Consequently, profit-driven American capitalists first relocated heavily polluting raw material production (such as steel and chemicals) overseas, then further subdivided production processes, outsourcing non-critical stages to numerous companies in different countries (mainly in Asia).
That's it.In this way, the capitalists of developed countries not only found cheap labor abroad but also discovered huge emerging markets.Japan was the first to take over industrial outsourcing from Europe and America. Its industries upgraded during this process, and some manufacturing plants were moved to the 'Four Asian Tigers' region. After the mid-1990s, China gradually became the 'world’s factory,' currently accounting for nearly 30% of global manufacturing value-added.
This round of globalization took more than sixty years to fully develop the global supply chain, which has become the backbone of today’s world order.
2. Factors in the Adjustment and Reversal of the Global Industrial Chain
The less developed countries have become global suppliers...