China's Semiconductor Production Declines for Two Consecutive Months

(Photo by AFP)

[Asia Economy Reporter Yujin Cho] Hong Kong's South China Morning Post (SCMP) reported on the 16th that China's semiconductor production volume has declined for two consecutive months.

According to China's National Bureau of Statistics, China's semiconductor integrated circuit (IC·semiconductor chip) production volume in October was 30.1 billion units, down from 30.4 billion units in September. China's semiconductor production volume has been declining for two consecutive months after reaching a peak of 32.1 billion units in August.

SCMP interpreted this decline as a sign that bottlenecks are occurring amid the global semiconductor supply shortage crisis.

China's National Bureau of Statistics did not specify the exact reasons for the decrease in semiconductor chip production volume, but experts interpreted it as an impact of global supply chain disruptions.

According to ICwise, a research company based in Shanghai, the lead time (the time from order to delivery) for semiconductor chip manufacturing processes has extended up to 12 months due to the prolonged COVID-19 pandemic.

The Chinese government, which has set semiconductor self-reliance as a major national policy goal, is providing indirect support to the semiconductor sector in the form of tax support and subsidies.

Thanks to the Chinese government's "all-in" policy to foster the semiconductor industry, the number of newly established semiconductor-related companies is also rapidly increasing.

According to Qichacha, a Chinese corporate information company, about 15,700 new semiconductor-related companies were registered in China between January and May this year, more than three times the number during the same period last year.

Meanwhile, amid the Chinese government's "all-in" approach to fostering the semiconductor industry, the international credit rating agency Moody's issued a report in early August warning of the risks of overproduction and inefficient investment in China's semiconductor sector.

In the report, Moody's warned that China's attempts to expand its semiconductor industry could lead to risks of overproduction and investment inefficiency, which may hinder the Chinese government's goal of achieving self-reliance in advanced industrial sectors.

This content was produced with the assistance of AI translation services.