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China’s March semiconductor output extends decline, dragged down by supply chain disruptions

  • The country’s production of integrated circuits last month dropped 5.1 per cent from a year earlier to 28.5 billion units
  • That marked a sharp contrast from March last year, when the total chip output surged 37.4 per cent to 29.1 billion units

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China’s first-quarter semiconductor output reached 80.7 billion units, a 4.2 per cent decrease from the same period last year. Illustration: Shutterstock
China’s total output of semiconductors in March declined further from the previous two months, dragged down by supply chain disruptions in manufacturing industries, as the government once again initiated lockdowns and other restrictions under its zero-Covid-19 policy.

The country’s production of integrated circuits (ICs) last month dropped 5.1 per cent from a year earlier to 28.5 billion units, compared with a 1.2 per cent decrease in the January-February period, according to data released by the National Bureau of Statistics (NBS) on Monday. The agency, which did not provide a breakdown of chip types, does not publish separate monthly data for January or February.

That marked a sharp contrast from March last year, when the total chip output surged 37.4 per cent to 29.1 billion units. NBS data showed that China’s overall first-quarter IC output reached 80.7 billion units, a 4.2 per cent decrease from the same period last year.

“The latest lockdown in Shanghai has further aggravated the situation by disrupting logistics and clogging up supply chains, which has affected many small and medium-sized enterprises,” said William Wang, chief executive at Shanghai-based semiconductor manufacturing consultancy IC Cafe.

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Che Pan
Che Pan joined the SCMP in 2020 and covers China tech news with a focus on semiconductors and AI. Previously, he covered China's economy at Caixin. Che graduated from Sciences Po Paris with a master degree in financial regulations and risk management.
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