Huawei ban, Covid-19 pandemic fears push China’s integrated circuit imports to record high
- In September, China imported over 53.7 billion integrated circuits, 12 per cent more than the month before and all-time high
- Chinese companies are said to be stocking up on chips amid concerns of supply disruptions due to US-China tensions and the pandemic
ICs, a collection of electronic components built onto a single piece of semiconducting material, are the backbone of almost all electronic devices. These tiny electronic components process data for products ranging from smartphones to cars and spacecraft.
In September, China imported over 53.7 billion ICs, 12 per cent more than the month before and an all-time high, according to data the country’s General Administration of Customs released on Tuesday. The ICs imported in September were worth 256.9 billion yuan (US$32.8 billion) in total, according to the customs authority.
From January to September, China imported 387.2 billion ICs, an increase of 23 per cent from the same period last year, the data showed.
“Huawei’s situation is a warning to other companies,” Sheng said.
Companies have also been stockpiling chips due to concerns about global supply chain interruptions due to the pandemic, according to Ministry of Commerce spokesman Gao Feng.
At the same time, the rise in IC imports reflect recovering market demand due to lifestyle changes during the pandemic, Gao said at a press conference, according to a transcript posted on the ministry’s website. “For example, online working, distance education and internet medical services have driven demand for servers, personal computers, tablets, and medical electronics.”