Tech war: China’s chip imports slump 23 per cent in the first 3 months as US trade sanctions, supply glut weigh on activity
- China imported 108.2 billion integrated circuits (IC) between January and March, down 22.9 per cent
- The updated trade data reflects how geopolitical tensions and increased US sanctions on China have weighed on semiconductor transactions
China’s chip imports dropped 23 per cent in the first three months of 2023 in sharp contrast with last year’s position, amid a slower global economy and increased efforts by the Biden administration to restrict the export of advanced semiconductor technologies to China.
China imported 108.2 billion integrated circuits (IC) between January and March, down 22.9 per cent from the same period last year, according to data published by the General Administration of Customs on Thursday.
The total value of chip imports tumbled 26.7 per cent to US$78.5 billion, down from US$107.1 billion last year, according to the customs data. The larger decline in import value reflects the fact that chip prices have fallen this year amid a supply glut and a slowing global economy.
In the first three months of 2022, the total quantity of China’s chip imports dropped 9.6 per cent year-on-year to 140.3 billion ICs, while the total value increased 14.6 per cent amid higher prices a year ago.
China’s IC exports fell 13.5 per cent year-on-year to 60.9 billion units in the first three months of 2023, compared with a 4.6 per cent drop a year ago. The total value of the exports dropped 17.6 per cent.