China’s chip imports record steepest drop this year amid manufacturing disruptions, tech war with US, economic headwinds

Name: Berlin stops Chinese companies from investing in German chip makers over security concerns
Uploaded: 2022-12-07T09:00:09.000Z
Duration: 2 min 38 s
Description: Berlin stops Chinese companies from investing in German chip makers over security concerns

Chip imports fell 14.4 per cent to 498.5 billion units in the 11 months ended November 30, down from 582.1 billion in the same period last year

Semiconductor exports also continued to decline, falling 11.7 per cent year on year to 250.5 billion units in the 11 months to November

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China has been buying semiconductors at a higher cost, despite an overall reduction in chip prices around the world because of a supply glut and a slowing global economy. Photo: Shutterstock

Ann Caoin Shanghai

Published: 5:00pm, 7 Dec 2022

China’s chip imports recorded their steepest drop this year in the 11 months ended November 30, according to the country’s latest customs data, as disruptions in manufacturing activity, a sweeping tech war with the US and economic headwinds continue to weigh on the world’s biggest market for semiconductors.

Integrated circuit (IC) imports fell 14.4 per cent to 498.5 billion units during those 11 months, down from 582.1 billion in the same period last year, according to data released on Wednesday by the General Administration of Customs. That decline surpassed the 13.2 per cent decrease in the first 10 months of 2022.

The total value of imported ICs, however, contracted just 1.8 per cent to US$381.2 billion during the first 11 months of this year. This means China has been buying chips at a higher cost, despite an overall reduction in semiconductor prices around the world because of a supply glut and a slowing global economy.

China posted a 1.4 per cent month-on-month decline in chip imports to 40.5 billion units in November, down from 41.1 billion in October. Still, that marked an improvement from the previous month, when IC imports tumbled 13.7 per cent from September.

02:38

Berlin stops Chinese companies from investing in German chip makers over security concerns

China’s IC exports, meanwhile, continued their accelerated pace of decline, falling 11.7 per cent year on year to 250.5 billion units in the 11 months to November – down from a 10.8 per cent drop in the first 10 months of this year. Total value of chip exports during that 11-month period rose 2.2 per cent year on year.

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China’s chip imports record steepest drop this year amid manufacturing disruptions, tech war with US, economic headwinds

Chip imports fell 14.4 per cent to 498.5 billion units in the 11 months ended November 30, down from 582.1 billion in the same period last year Semiconductor exports also continued to decline, falling 11.7 per cent year on year to 250.5 billion units in the 11 months to November

Chip imports fell 14.4 per cent to 498.5 billion units in the 11 months ended November 30, down from 582.1 billion in the same period last year

Semiconductor exports also continued to decline, falling 11.7 per cent year on year to 250.5 billion units in the 11 months to November