China’s chip buying crashed in 1Q23 as Biden sanctions bit
The value of China’s 1Q23 chip imports fell nearly 27 percent compared with the same quarter a year before, according to a South China Morning Post article referencing government statistics.
The reasons for the fall cited were: tougher export controls being implemented by the US government, a slower global economy and the impact of lower averages selling prices (ASPs).
China imported 108.2 billion ICs in 1Q23, down 22.9 percent from 1Q22, SCMP said quoting data published by the General Administration of Customs on Thursday. However, the total value of chip imports fell by 26.7 percent to US$78.5 billion, down from US$107.1 billion last year. The larger decline in import value reflects that ASPs for chips have fallen over the year due to a supply glut – particularly the prices of memories – inventory correction and a slowing global economy.
The import reduction is in line with data produced by World Semiconductor Trade Statistics (see China’s chip market drops by a third as global free fall continues).
At the same time the value of China’s 1Q23 IC exports fell by 17.6 percent compared with 1Q22. The volume of IC experts fell by 13.5 percent to 60.9 billion units, the SCMP said.
Under pressure
China was under pressure from US export control licensing regime throughout 2022, imposed on the grounds of national security, but the US increased that pressure in October (see Advanced logic, memory, YMTC come under China export controls).
In January, it was reported that the US had reached a joint agreement with Japan and the Netherlands to coordinate export controls to China covering certain chipmaking equipment (see Japan, Netherlands agree to help US limit exports to China).
However, China’s data showed an improved situation in March after weakness in the first two months of the year, SCMP said. This was ascribed to a recovery in China’s manufacturing activities after the government had relaxed Covid lockdown policies in December.
Related links and articles:
China’s chip market drops by a third as global free fall continues
Advanced logic, memory, YMTC come under China export controls
Japan, Netherlands agree to help US limit exports to China
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