Chip production in China increased in June but this could
Hardware

Chip production in China increased in June, but this could not offset the decline throughout the first half of the year

Late last week, news broke that chip imports to China fell 18% in the first half of this year, largely due to sanctions imposed by the US and its foreign policy allies. According to the latest statistics from Chinese government agencies, China’s integrated circuit production volume fell 3% in the first half of the year, although June alone saw a 5.7% increase.

    Image source: SMIC

Image source: SMIC

New statistics lead to a resource South China tomorrow post. According to the National Bureau of Statistics of the People’s Republic of China, 161.7 billion integrated circuits were manufactured in the country from January through June this year, down 3% from the same period last year. At the same time, June was pleased with the year-over-year growth in chip production volume, as the 32.2 billion chips released in the first month of summer are up 5.7% from June last year’s results. A year ago, however, the Chinese economy was impacted by the fallout from health restrictions, which formed the low base effect in June.

The sanctions of the geopolitical ally USA will continue to have a negative impact on the development of the Chinese semiconductor industry. Starting next week, new export restrictions on the delivery of lithography equipment from Japan to China are to come into force. From September 1st, there will be extended restrictions from the Netherlands.

In terms of value, China’s share of sales in the global semiconductor industry increased by 4.2% in the first half of the year. Not only did integrated circuit production decline during this period, but microcontroller production also fell by 25% and smartphone production by about 9%. According to industry officials, the volume of purchases of equipment and raw materials by Chinese manufacturers has declined for the third consecutive month, according to the June results.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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