Science & Technology

China’s Integrated Circuit Output Slows

In China, integrated circuit (IC) output in November showed an increase of 8.7% year-on-year.

China’s Integrated Circuit Output Slows

In quantitative terms, the mentioned figure is 37.6 billion units. It is worth noting that the pace of the upward dynamic of IC output in the Asian country has recently slowed down due to increased technological rivalry between Beijing and Washington. As part of the mentioned process, the United States is gradually expanding restrictions on the export of chips and microcircuits manufacturing equipment to China.

In November, the growth of IC output has fallen to single digits for the first time since the beginning of the current year. The relevant information was published by the National Bureau of Statistics of the Asian country last Monday, December 16.

Total IC output in the first 11 months of the current year in China amounted to 395.3 billion units. The corresponding indicator increased by 23.1% year-on-year.

The semiconductor industry is a kind of battleground between the United States and China in the technology sector. In the current month, Washington expanded restrictive measures against the Asian country’s chip manufacturing area. The United States imposed export controls on 24 types of equipment for making microcircuits and three categories of critical software. Washington has also added 140 chip-related Chinese organizations to its trade blacklist. In retaliation, Beijing launched an antitrust probe against US-based microcircuit industry giant Nvidia last week.

China’s IC output is buoyed by strong demand from areas of activity such as robotics and electric vehicles.

The output volume of industrial robotics in November in the Asian country grew by 29.3% year-on-year. Electric vehicle output increased by 51.1% in China over the same period.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.