According to the latest official figure, China saw its semiconductor import value drop by the most in recent years, signaling the US export curbs, China's indigenization efforts, and a lackluster demand for electronics.
According to data from the General Administration of Customs of China, its semiconductor imports by quantity fell to 4.75 billion units, with import value falling by 15.44% year-over-year to US$349.38 billion in 2023, the largest annual fall on record since the availability of customs data began in 2024, amid prolonged economic uncertainties and stringent US export controls.
Amid the falling demands from China for semiconductors, official data in Taiwan shows that Taiwan's chip exports to China fell by 17.85% to US$47.27 million in 2023. Meanwhile, South Korea, a significant exporter of chips, witnessed a 7.4% year-on-year decline in exports in 2023, totaling US$632.69 billion. This decline was mainly attributed to the subdued performance of chips amid global economic uncertainties.
This sharp decline underscores the persistent challenges faced by the global chip industry, which has been grappling with a prolonged slump. Chinese demand, in particular, has been adversely affected by rigorous COVID-19-related restrictions and a lackluster post-pandemic recovery. Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, reported a 4.5% drop in sales for 2023. Despite this, the company's management remains optimistic about a robust growth outlook for the current year.
The sharp decline in China's imports of semiconductors underscores the persistent challenges in the global chip industry. Further exacerbating the situation, US President Joe Biden's administration heightened restrictions on China's access to cutting-edge semiconductors capable of supporting artificial intelligence models.
Chinese media Yicai quoted industry experts saying that China's sluggish import of chips and semiconductor equipment reflects the global economic headwinds in 2023. This is particularly evident due to factors such as weak sales of Chinese smartphones and notebooks. Concurrently, Chinese companies are trying to boost domestic chip production to reduce reliance on imported chips.
Chinese imports of semiconductors | ||||
Date | Quantity ( billion units) | Value (US$m) | YoY | ASP (US$m) |
2019 | 4,451.30 | 305,530.60 | -2.10 | 14.57 |
2020 | 5,435.00 | 349,963.60 | 14.54 | 15.53 |
2021 | 6,356.00 | 432,385.60 | 23.55 | 14.70 |
2022 | 5,377.20 | 413,152.20 | -4.45 | 13.02 |
2023 | 4,795.60 | 349,376.50 | -15.44 | 13.73 |
Source: General Administration of Customs of China, January 2024
