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

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Integrated circuits, a collection of electronic components built onto a single piece of semiconducting material, are the backbone of almost all electronic devices. Photo: Reuters

Published: 5:00pm, 16 Oct 2020Updated: 5:00pm, 16 Oct 2020

China’s import of integrated circuits (ICs) reached a record high in September as companies stockpiled chips amid concerns over supply disruptions due to US-China tensions – especially after the latest restrictions on Huawei Technologies – and the coronavirus 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.

China still lags the US and Taiwan in advanced semiconductor technologies, including chip design and manufacturing, despite recent efforts to achieve self-reliance in chips.

Sheng Linghai, an analyst at Gartner, said Chinese companies are stocking up on integrated circuits after the US banned local telecommunications giant Huawei from doing business with key chip suppliers such as Qualcomm and Taiwan Semiconductor Manufacturing Company (TSMC), unless they obtain a licence from the US Commerce Department.

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