Chip output in China fell by 17% in July due to corona closures and US threats: 27.2 billion units

by time news

This is according to the data of the Chinese Bureau of Statistics. The calculation is made in comparison to the corresponding month last year. A similar level of 27.5 billion units was also recorded in June. The Chinese blame the crisis on the supply chain

According to data released by the National Bureau of Statistics of China, the production of integrated circuits (ICs) was 27.2 billion units in July 2022, a decrease of 16.6% compared to the same month last year. This was reported by the South China Morning Post, a newspaper and news website operating from Hong Kong.

“The weakness in chip production is another setback for China’s ambitions to increase domestic semiconductor production and reduce dependence on imported chips,” the report states.

China suffered a sharp drop in semiconductor output in July due to disruptions in the supply chain due to stricter corona closures. While the US is doubling domestic chip production with the help of allies like South Korea.

According to data released by the National Bureau of Statistics, production of integrated circuits (ICs) fell 16.6% year-on-year to 27.2 billion units in July 2022. The South China Morning Post reports. Comparing month to month – in June the figure was 27.5 billion units, compared to 28.8 billion units in May.

“The weakness in chip production is another setback for China’s ambitions to increase domestic semiconductor production and reduce dependence on imported chips,” the report states.

China blames the chip law that allocates 280 billion dollars to the development of innovation in the American economy, of which 53 billion dollars is for the field of chips, one that is designed to neutralize China’s chip drive.
The Chips and Science Act is the American bet to encourage chip manufacturers to reverse course and build pubs in the US and reduce dependence on China.
“It is troubling for global supply chains to see the US implement increasing administrative interference in normal market competition when it comes to advanced technology areas such as semiconductors,”

You may also like

Leave a Comment