March 31, 2018

RFID chip- the central point of China and US trade war

RFID chip in China and US trade war


The chip is the most powerful weapon that american have against China, also is te world’s strongest moat!

RFID chip

The chip is also a problem that the Chinese people have to face. No matter how exaggerated the GDP figures are. If there is no comprehensive domestic chip replacement, the sino-us trade war will have a huge impact on the chip and chip related industry. The sino-us trade war is imminent. Who can take chip as nuclear weapon, US or China?

Vice President of the China international economic and exchange center Wei jianguo, March 24th, told the China Daily that after the list of first discontinued concessions announced. China is working on the second and the third list, such as aircraft, RFID chip area. What’s more, the measures China can take are not limited to commodities. But other industries, such as tourism.

Do you know how many US dollar that China import the chip per year?

In fact, it’s a joke taking chips to coerce and punish US, those who say this do not seem to understand the particularities and importance of  this industry. And may think that our manufacturing and purchasing power are strong enough to make other person freeze. However, China needs to import $230 billion of chips a year. And for many years it is the first to import a single product. What we need to keep in mind is the $230 billion chip, or the chip that the customer specifies, can’t changed. Or that China cannot independently design and produce the chips that must to imported. Those domestic chips which can replace imported chip, our domestic chip enterprise already did enough outstanding!

Memory RFID chip has increased a lot!

Since 2017, the price of memory RFID chip have increased more than 100%. The price of MLCC have increased more than 10 times. China’s manufacturing cost have rose 5% to 15%, and it is unable to resist. Now that you can’t  produce it, the rising price of the imported chips is uncontrollable.

Once the sino-us trade war starts, even without an embargo. The U.S. government using administrative to push the cost of its electronic to one tenth of ours is just a piece of cake. The RFID industry is going to have an impact, such as chip wristband.

Although Americans have mastered high-end chips and core technologies. This is an upstream resource. But any technology or product needs to applied to the market. It is expected that the Asian region will lead the world in RFID market growth. From LUX Research, according to a report is expected in 2017 China’s RFID chip market will grow to more than twice existing scale, reached $807.8 million, including ultra-high frequency (UHF) market size will be $236 million. RFID chip as export hot sale product, its sales will get great influenced because of the trade war.

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