China’s semiconductor output shrinks 17 per cent in first 2 months of 2023 amid economic headwinds, US sanctions
- Production of ICs in January and February totalled 44.3 billion units, according to data released by the National Bureau of Statistics (NBS)
- Chinese agencies typically combine output data for January and February, when manufacturing activity often slows due to the Lunar New Year

China’s integrated circuit (IC) output dropped 17 per cent in the first two months of 2023, as the country’s semiconductor industry grappled with economic headwinds and escalating US trade sanctions.
Production of ICs in January and February totalled 44.3 billion units, marking a stark contrast with the same period last year when chip output fell just 1.2 per cent to 57.3 billion units, according to data released by the National Bureau of Statistics (NBS) on Wednesday.
The percentage drop also exceeded the 11.6 per cent decline recorded for the whole year of 2022.
Chinese statistics agencies typically combine output data for January and February, when manufacturing activity often slows due to the Lunar New Year holiday.
The decline in the first two months reflects how economic headwinds and US trade sanctions continue to cast a shadow on production capacity in the world’s largest chip market.
Shipments of microcomputers dropped 21.9 per cent year on year to 46 million units in the first two months amid weak consumer demand, while in the same period smartphone output in China fell 14.1 per cent year on year, according to the NBS data.