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The current downward trend is in sharp contrast with roaring IC import growth seen over the past two years. Photo: Shutterstock

China’s chip import volume falls in first four months amid tech self-sufficiency push, Covid-related manufacturing disruption

  • China imported 186 billion IC units from January to April, down 11.4 per cent year-on-year
  • The current downward trend is in sharp contrast with roaring IC import growth seen over the past two years
China’s import volume of integrated circuits (ICs) dropped in the first four months of 2022, according to official customs data, at a time when the country is attempting to cut its reliance on foreign technologies while imposing strict anti-pandemic measures that have crippled the manufacturing sector.

China imported 186 billion IC units from January to April, down 11.4 per cent from the 210 billion units imported during the same period last year, data from the General Administration of Customs shows. However, the value of the imports jumped 10 per cent to US$134.5 billion as a global chip shortage pushed up prices.

China’s imports of ICs shrank 9.6 per cent in volume in the first quarter from a year ago, according to Chinese customs data released last month, marking a sharp retreat from the 33.6 per cent increase in the same period in 2021.

The figures released by the General Administration of Customs on Monday did not include a breakdown by IC type.

The current downward trend is in sharp contrast with roaring IC import growth over the past two years, when the monthly IC import growth rate averaged around 25 per cent.

China to build global sourcing platform for semiconductors in Shenzhen

Chinese companies have been stockpiling semiconductors since late 2020 amid concerns over supply disruptions caused by US-China economic decoupling and the coronavirus pandemic. As the tech war with the US has intensified, Beijing has doubled down on a self-sufficiency drive for chips by pumping investment into the sector.

With strong government support, the country’s semiconductor sales could reach a 17.4 per cent share of the global market by 2024, making China one of the world’s largest chip makers after the US and South Korea, according to a report from the Semiconductor Industry Association in the US.

However, China’s chip ambitions are currently stymied by a lack of talent and the necessary technology for advanced chip development. Beijing’s “dynamic zero-Covid approach” has also disrupted supply chains due to factory closures.

Shanghai chip maker has two-thirds of workers sleeping in factory

Multiple manufacturing hubs have entered strict lockdowns. Key manufacturers, including Tesla and Semiconductor Manufacturing International Corp, have resumed production under a “closed-loop” system, with workers sleeping at or near work sites to ensure zero contact with outsiders.

IC production in China dropped 4.2 per cent from a year earlier to 80.7 billion units in the first quarter, marking the worst quarterly performance since 2019, according to data released by the National Bureau of Statistics last month.

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