China’s semiconductor output decline slows in November, but still lags levels seen before new US export controls
- Output of integrated circuits fell 15 per cent last month to 26 billion units, compared with a 26.7 per cent plunge in October
- Chip output in November was still lower than the 27.5 billion units produced in May during Shanghai’s two-month Covid-19 lockdown
China’s integrated circuit (IC) output in November dropped 15.2 per cent from a year ago, as the country’s semiconductor industry grappled with weak demand and the latest US trade sanctions.
While IC production last month fell to 26 billion units, according to data released by the National Bureau of Statistics (NBS) on Thursday, it marked the slowest year-on-year decline in the past five months.
In the first 11 months of 2022, China’s IC output reached 295.8 billion units, down 12 per cent from the same period last year, NBS data showed.
China has been doubling down on its drive to achieve semiconductor self-sufficiency by pledging state support and pumping investments into the domestic industry, in response to escalating US trade restrictions in recent months.
Washington in October expanded the scope of its hi-tech export controls targeting chip makers in mainland China, following the Biden administration’s enactment of the Chips and Science Act in August to boost American production of ICs.
However, national chip output in November was still lower than the 27.5 billion units produced in May, and roughly equal to the 25.9 billion units made in April, when an unprecedented two-month Covid-19 lockdown in chip production hub Shanghai stalled manufacturing activities.
The sluggish output reflects the impact of dwindling consumer demand for electronics, as well as the disruptions to factory activities caused by China’s zero-Covid policy, which had yet to be relaxed last month.
In the third quarter, smartphone shipments fell 11 per cent in China from a year earlier, compared with a 9 per cent decrease globally, while personal computer (PC) shipments in China dropped 13 per cent, according to market research firm Canalys.