China chip output growth slows in July as self-sufficiency drive continues
- Production of integrated circuits (ICs) reached 29.2 billion units in July, the fourth consecutive month of positive growth
- The slower IC output trend in July comes as the domestic chip market struggles with weak consumer demand and high inventories
China’s integrated circuit (IC) output rose 4.1 per cent in July, a slowdown from the previous two months, as the semiconductor industry continues to struggle with economic headwinds and escalating tech rivalry between Washington and Beijing.
Production of ICs reached 29.2 billion units in July, the fourth consecutive month of positive growth this year, according to data released by the National Bureau of Statistics (NBS) on Tuesday.
The growth rate, however, was slower compared with that in May and June, which showed increases of 7 per cent and 5.7 per cent respectively. The data covers companies with an annual turnover above 20 million yuan (US$2.9 million).
Despite continued monthly growth, IC output in the first seven months of this year was down 3.9 per cent from the same period of last year, totalling 191.2 billion units, the NBS data showed.
In April, China’s IC output recorded 3.8 per cent year-on-year growth to 28.1 billion units, the first monthly increase in 16 months. This year’s recovery comes as China’s economy continues to recover from strict Covid-19 restrictions and as it weathers the US-China tech storm.
The slower IC output trend in July comes as the domestic chip market struggles with weak consumer demand and high inventories. China’s smartphone sales fell 4 per cent year on year in the second quarter, the lowest second-quarter sales data since 2014, according to data from research firm Counterpoint.
