China semiconductor imports surge to all-time high in March amid global chip shortage

China imported a record 58.9 billion semiconductor units in March, worth US$35.9 billion

That boosted the country’s total first-quarter chip imports to 155.6 billion units, valued at US$93.6 billion

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A woman visits a semiconductor device display at the Appliance and Electronics World Expo in Shanghai on March 23, 2021. Photo: Reuters

Published: 7:00pm, 13 Apr 2021Updated: 7:50pm, 13 Apr 2021

Semiconductor imports by China surged to an all-time high in March, according to the latest figures released by the country’s customs authorities, as an acute chip shortage continued to disrupt major industries around the world.

China imported 58.9 billion semiconductor units in March worth US$35.9 billion, a new monthly high for the category, according to data released by the General Administration of Customs.

In the first quarter of this year, China’s total integrated circuit (IC) imports reached 155.6 billion units, up 33.6 per cent from a year ago and worth US$93.6 billion. By comparison, first-quarter chip import volume in 2020 and 2019 totalled, respectively, 116.1 billion units worth US$72.1 billion and 87.6 billion units valued at US$65.2 billion.

The increased IC imports by China come amid a global shortage of semiconductors that has chip makers scrambling to supply manufacturers worldwide, including from the car and smartphone industries to those in the home appliances and personal computer sectors.

A man visits a display of semiconductor devices at Semicon China, a trade fair for integrated circuit technology, in Shanghai on March 17, 2021. Photo: Reuters

The first hints of trouble emerged in the spring of last year, when the coronavirus pandemic spread worldwide. Demand was initially decimated, as manufacturers around the world scaled back production, but it quickly picked up when these customers rushed to get more orders when economies revived middle of last year, led by China.

“We see three major factors that lifted the [chip import] figure this quarter [in China],” said Ivan Platonov, an analyst at research firm EqualOcean. He indicated that many original equipment manufacturers (OEMs) are “hedging against geopolitical risks” and that more firms can now afford extensive inventory because “the chip shortage has extended real product cycles”.

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