China’s chip imports soar in June as manufacturers build up supply amid global shortage
- China imported 51.9 billion semiconductor devices in June, the third-biggest volume in a single month after March and April
- The country spent a total of US$38 billion on chip imports in June
Chips remain the largest product category imported by China. The country spent a total of US$38 billion on semiconductor imports in June, almost double the cost of its crude oil shipments in the same month.
China brought in more than 310 billion semiconductor devices in the first six months of this year, up 29 per cent from the same period in 2020, data from the General Administration of Customs showed.
Taiwan’s worst drought in decades adds pressure to global chip shortage
The car industry’s faster-than-anticipated bounce back after factory shutdowns – when companies cancelled chip orders after incorrectly forecasting lower demand for the rest of the year because of the pandemic – sent semiconductor supply into a downward spiral, creating a shortfall in the tiny electronics across a wide swathe of industries.
While most chip makers in China are not able to produce large volumes of advanced 14-nanometre node semiconductors, domestic firms can supply ICs based on mature technology for home appliances and cars.
As an example, Semiconductor Manufacturing Electronics (Shaoxing) Corp, a chip packaging and assembly firm backed by Chinese foundry Semiconductor Manufacturing International Corp, also produces 70,000 8-inch silicon wafers a month after three years in operation. The company plans to go public in China’s A-share market, according to a regulatory filing released by Zhejiang Securities on Monday.