China’s semiconductor output shrinks 17 per cent in first 2 months of 2023 amid economic headwinds, US sanctions

  • Production of ICs in January and February totalled 44.3 billion units, according to data released by the National Bureau of Statistics (NBS)
  • Chinese agencies typically combine output data for January and February, when manufacturing activity often slows due to the Lunar New Year

Ann Caoin Shanghai
A worker examines a semiconductor wafer at HT-Tech (Nanjing) Co, in east China’s Jiangsu province, March 9, 2023. Photo: Xinhua

China’s integrated circuit (IC) output dropped 17 per cent in the first two months of 2023, as the country’s semiconductor industry grappled with economic headwinds and escalating US trade sanctions.

Production of ICs in January and February totalled 44.3 billion units, marking a stark contrast with the same period last year when chip output fell just 1.2 per cent to 57.3 billion units, according to data released by the National Bureau of Statistics (NBS) on Wednesday.

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