Chinese semiconductor imports fall as self-sufficiency drive shapes up

China’s imports of integrated circuits (ICs) shrank 9.6 per cent in volume in the first quarter from a year ago, according to Chinese customs data, marking a sharp retreat from the 33.6 per cent increase in the same period in 2021.

The values of IC units it bought, however, were rising. In the first three months of the year, entities in China paid a total of US$107.2 billion for 140.3 billion IC units, up 14.6 per cent year on year. The average unit price rose 26 per cent from a year ago, according to the Post’s calculation, based on customs data.

The figures released by the General Administration of Customs on Wednesday did not include a breakdown by IC type.

China is the world’s largest importer of foreign chips, which are used for producing electric vehicles, smartphones and other consumer electronics, many of which are then exported to the rest of the world, including markets where the semiconductors originally came from.

The reduction in import volume comes amid China’s vigorous push towards technological self-sufficiency. But China’s position in the global value chain is also under growing pressure amid rising geopolitical headwinds and Beijing’s dynamic zero-tolerance approach towards the coronavirus.