China’s IC imports fall 11.4% in Q1, but value jumps on price spike
A worker checks a chip at Jade Bird Fire Co in Zhangjiakou, north China’s Hebei Province, March 27, 2022. Jade Bird manufactures firefighting products. Its self-developed Zhuhuan chip, which integrates fire detection capability, communication technology and integrated circuit technology, is widely used in China. Photo: CGV
China’s IC imports saw a sharp decline in terms of volume in the first quarter of 2022, but the value of imports jumped significantly, due to soaring prices of the crucial component globally, according to Chinese customs data. released on Monday.
In the three months, the import volume of integrated circuits reached 186.08 billion units, down 11.4% year-on-year, while the value of imports rose 10% from levels of 2021 in the first quarter, standing at 903.76 billion yuan ($134.36). billion), data from the General Administration of Customs (GAC) showed.
China imported 45.76 billion units of integrated circuits in April, up from 48.36 billion units the previous month, according to the GAC.
In addition to global inflation and soaring raw material prices for IC manufacturing, “human factors” were also linked to soaring import values as volumes decline, said Xiang Ligang, general manager of the Beijing-based News Consumption Alliance. Global Times Monday.
“Some major IC producers have kept their normal capacity amid global chip shortages to minimize risk and boost profits,” Xiang said.
Meanwhile, domestic IC production has been affected by COVID-19 outbreaks in some major manufacturing bases, especially in Shanghai and the wider Yangtze River Delta region, although various measures have been put in place. place to minimize disruption.
In the domestic IC industry, Shanghai-based major semiconductor maker SMIC said on April 27 that 60 percent of its employees are under a closed-loop operation mechanism and operations remain normal.
Another major producer Huahong Group also redirected 6,000 employees before strict anti-epidemic restrictions were put in place in Shanghai on March 27.
Data from the National Bureau of Statistics showed that the volume of ICs produced in the country in March 2022 recorded a year-on-year decline of 5.1 percent to 28.5 billion units.
“Even though Shanghai has taken measures to ensure the normal operation of IC enterprises under quarantine policies, their capacity has been more or less affected, but the decline has remained within a reasonable range,” Xiang noted.
Xiang suggested that the IC production line requires fewer workers than other manufacturing industries and also requires a sterile operating environment, which reduces the risk of spreading the virus.
“China’s IC import volume and domestic production capacity will recover and stabilize once the latest outbreaks are brought under control,” Xiang said.