China’s chip imports started to shrink from early 2022, with numbers for January and February marking the first year on year drop since the beginning of 2020. In November the volume of imported chips dropped by 25.3 per cent to 40.5 billion units.
The drop comes at a time when the US is tightening controls over advanced chip exports to China. The Bureau of Industry and Security, an agency under the US Commerce Department, last October updated a series of export controls targeting China’s advanced semiconductor manufacturing sector, adding new licensing requirements for personnel and equipment that support the production of advanced chips in China.
Meanwhile, the volume of China’s chip exports last year also dropped 12 per cent year on year to 273.3 billion. The value of exports, however, slightly increased by 0.3 per cent during the same period to US$153.9 billion, leaving the country with a trade deficit of US$261.7 billion in chip trade.
China’s overall exports rose 7 per cent in 2022 while imports gained 1.1 per cent, making a whole-year trade surplus of US$877.6 billion, according to China’s customs data.
China’s domestic IC output in November dropped 15.2 per cent from a year ago, according to the latest data from the National Bureau of Statistics. While IC production in November fell to 26 billion units, marking the slowest year-on-year decline in the past five months.
The statistics agency is expected to release IC output figures for December next week.
