Ministry of Industry and Information Technology: Chip supply will remain tight for a long period of time

On January 20, the State Council New Office held a press conference on the development of industry and informatization in 2021, and Luo Junjie, director of the Operation Monitoring and Coordination Bureau of the Ministry of Industry and Information Technology, said that the stability of the global integrated circuit supply chain is still facing severe challenges, and the supply of such chips will remain in a state of tension for a long time in the future.

Press Conference Podium (Photo by Liu Jian)

Last year, the global integrated circuit manufacturing capacity continued to be tight, and all walks of life were facing the problem of "lack of cores", which had a greater impact on the development performance of the global industry. Among them, the automobile industry in particular has been hit the hardest, and many domestic car companies have therefore reduced production or short-term production stoppages. The Ministry of Industry and Information Technology understands the analysis, which is mainly due to two aspects. On the one hand, with the continuous improvement of the degree of social intelligence, the demand for chips as the most critical component of smart devices continues to grow. On the other hand, the spread of the global epidemic and the unreasonable sanctions and suppression of foreign companies by some individual countries have caused a serious impact on the global semiconductor supply chain. The combination of multiple factors has also objectively caused the emergence of the problem of "lack of core". With the gradual play of the market regulation mechanism, as well as the joint efforts of governments at all levels, automobile companies, and chip companies, the problem of chip "lack of core" in the automotive field is gradually alleviating. However, it should also be noted that the stability of the global integrated circuit supply chain is still facing severe challenges, and the supply of such chips will remain in a state of tension for a long time in the future.

Integrated circuits is a highly globalized industry, China is the world's largest integrated circuit market, the Chinese government has been adhering to the principle of openness and development, is committed to building a global close cooperation, sustained and stable industrial chain supply chain. Therefore, in response to the problem of "lack of core" in automobiles, the Ministry of Industry and Information Technology has also been paying close attention to and actively responding, and the Ministry of Industry and Information Technology has taken multiple measures to ensure the supply of chips and maintain the stable operation of the automobile industry. In the next step, the Ministry of Industry and Information Technology will also strengthen communication and cooperation with relevant countries and regions, encourage backbone enterprises at home and abroad to increase investment efforts, and promote the improvement of the supply capacity of the entire industrial chain of chips.