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19
2024
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04
In the first quarter, China's chip production rose 40% year-on-year!
April 18 news, the first quarter of this year, China's total chip production surged 40% year-on-year to reach 98.1 billion, which shows that under the advanced process development restricted by the United States, China's mature process chip production capacity is expanding rapidly.
According to the latest data released by the National Bureau of Statistics on Tuesday, in March alone, the output of integrated circuits in China increased by 28.4 percent to 36.2 billion, a record high. It said China had seen "faster growth in high-tech manufacturing".
The sharp increase in China's IC production is partly due to strong demand from downstream industries such as new energy vehicles. Data show that the national production of new energy vehicles increased by 29.2% to 2.08 million units in the first quarter. Smartphone production rose 16.7 percent over the same period.
China's IC capacity has been expanding in recent years as semiconductor manufacturing facilities have sprung up across the country, with output in the first three months of this year almost double that of the same period in 2019.
A report released by the Center for Strategic and International Studies, a Washington-based think tank, said that because of the US embargo on advanced chip technology in China, most new Chinese investment is now focused on semiconductors with mature processes.
"The unintended consequence of U.S. export controls on advanced chip technology to China could be a wave of state-sponsored investment, leading to overproduction and potentially leading to Chinese dominance in global traditional chip production," the researchers wrote.
Market research firm TrendForce said in an earlier report that the mainland's global share of mature process capacity is expected to rise to 39 percent by 2027 from 31 percent last year.
Despite China's push for self-sufficiency in chips, it still relies heavily on chip imports. Data released by the General Administration of Customs last week showed that imports of integrated circuits rose 12.7 percent to 121.5 billion units in the first quarter, while exports of integrated circuits edged up 3 percent to 62.4 billion units. Last year, semiconductors remained the mainland's largest import, ahead of crude oil, customs data showed.
However, it should be pointed out that a large part of the imported integrated circuits are designed by Chinese chip designers and are manufactured by overseas wafer foundries.
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