China's Semiconductor Production in August Drops 24.7%... Largest Decline Since 1997

[Asia Economy Reporter Kwak Min-jae] China's semiconductor production in August this year sharply declined due to the impact of the 'Zero COVID' policy and decreased demand amid an economic downturn.

On the 17th (local time), Hong Kong's South China Morning Post (SCMP) reported, citing data from China's National Bureau of Statistics, that China's integrated circuit (IC·semiconductor chip) production in August fell to 24.7% less than the same period last year, totaling 24.7 billion units.

This level of semiconductor chip production in China is the lowest monthly figure since October 2020. The 24.7% decrease in semiconductor chip production in August is the largest monthly drop since Chinese authorities began compiling monthly semiconductor production data in 1997.

According to China's National Bureau of Statistics, from January to August this year, China's semiconductor chip production totaled 218.1 billion units, a 10% decrease compared to the same period last year.

The decline in China's semiconductor production is analyzed to be influenced by the government's strict control policies against COVID-19 (Zero COVID) and the economic recession.

Disruptions in the semiconductor supply chain due to the US-China technological competition also appear to have affected China's semiconductor production.

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