April 22nd news, according to the latest reports, China’s total production of integrated circuits in the first quarter surged by 40%, reaching 98.1 billion units. The latest data released by the Chinese National Bureau of Statistics on Tuesday showed that in March alone, the national production of integrated circuits soared by 28.4%, reaching 36.2 billion pieces, setting a new historical high!
The significant growth in China’s integrated circuit production is partly due to strong demand from downstream industries such as new energy vehicles. Government data shows that the production of new energy vehicles in China grew by 29.2% in the first quarter, reaching 2.08 million units. During the same period, the production of smartphones increased by 16.7%.
In recent years, as semiconductor production facilities have sprung up across the country like bamboo shoots after rain, China’s integrated circuit production capacity has continued to expand, with the output in the first three months of this year nearly tripling that of the same period in 2019. According to a report released by the Washington think tank Center for Strategic and International Studies, under the U.S. ban on advanced chip technology in China, most of China’s new investments are concentrated in the mature semiconductor field.
Researchers wrote: “An unintended consequence of U.S. export controls on advanced chip technology to China may be a wave of state-supported investments leading to overproduction and potentially enabling China to dominate global traditional chip production.”
The Taiwan-based integrated circuit research company TrendForce said in an earlier report that by 2027, the global share of Mainland China’s mature process capacity is expected to rise from 31% last year to 39%.
In Mainland China, semiconductors using mature processes above 28 nanometers (with limited use of advanced processes like 7nm) are now accounting for 29% of the global production capacity.
In recent years, as semiconductor production facilities have sprung up across China like bamboo shoots after rain, China’s integrated circuit production capacity has continued to expand. The output in the first three months of this year is nearly three times that of the same period in 2019.
Despite China’s self-sufficiency campaign, it still heavily relies on chip imports. Data released by the General Administration of Customs last week showed that integrated circuit imports grew by 12.7% in the first quarter, reaching 121.5 billion pieces, while integrated circuit exports grew by 3%, reaching 62.4 billion pieces. Customs data shows that last year, semiconductors remained Mainland China’s largest import commodity, ranking ahead of crude oil.
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