On April 22, according to the latest reports, China's total integrated circuit production surged by 40% in the first quarter to 98.1 billion, and the latest data released by China's National Bureau of Statistics on Tuesday showed that the national integrated circuit output soared 28.4% to 36.2 billion pieces in March alone, a record high!
China's IC production has grown sharply, partly due to strong demand from downstream industries such as new energy vehicles. China's new energy vehicle production rose 29.2% to 2.08 million units in the first quarter, according to government data. During the same period, smartphone production increased by 16.7%.
In recent years, China's integrated circuit production capacity has expanded as semiconductor production facilities have sprung up across the country, with output in the first three months of this year nearly tripling compared to the same period in 2019. According to a report released by the Center for Strategic and International Studies, a Washington-based think tank, most of China's new investment in the context of the U.S. embargo on China's advanced chip technology is concentrated in the mature semiconductor sector.
"One unintended consequence of U.S. export controls on China's advanced chip technology could be that a wave of state-backed investment leads to overproduction and could make China dominate traditional chip production globally," the researchers wrote. ”
TrendForce, a Taiwanese integrated circuit research company, said in an earlier report that the mainland's global share of mature process capacity is expected to rise to 39% by 2027, up from 31% last year.
Chinese mainland has widely adopted mature process semiconductors above 28nm in many fields such as automobiles (advanced processes such as 7nm are not widely used), and currently accounts for 29% of global production capacity.
In recent years, semiconductor production facilities have sprung up across China, and China's integrated circuit production capacity has been expanding. Production in the first three months of the year was almost three times that of the same period in 2019.
Despite its self-sufficiency movement, China is still heavily dependent on chip imports. Data released by the General Administration of Customs last week showed that imports of integrated circuits rose 12.7% to 121.5 billion in the first quarter, while exports of integrated circuits rose 3% to 62.4 billion. Customs data shows that last year, semiconductors were still Chinese mainland's largest import, ahead of crude oil.
Source | Dingdong core incident
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