[News] China’s IC Exports Regain Momentum, Amounting to RMB 7.36 Trillion by August

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Recently, a report by People’s Daily notes that according to data released by China’s customs authorities, in the first eight months of this year, China’s integrated circuit (IC) exports amounted to RMB 736.04 billion, an increase of 24.8%. IC exports have surpassed automotive exports (which totaled RMB 540.84 billion during the same period), making ICs a major category in China’s export products, according to the report.

The data suggests that China’s IC exports are gradually recovering from downward pressure and regaining momentum.

Looking at a longer time frame, the report suggests that China’s IC export value has grown more than 1.5 times over the past decade. In 2023, China’s IC export volume and value reached 2,678 billion units and RMB 956.77 billion, respectively, representing increases of 74.5% and 155.9% compared to 2014, when the figures were 1,535 billion units and RMB 956.77 billion.

From 2022 to 2023, the global chip industry experienced a downturn, with the market’s main focus shifting from “chip shortages” to “inventory reduction,” the report notes. According to a report by the Semiconductor Industry Association (SIA), global semiconductor sales in 2023 totaled USD 526.8 billion, a year-on-year decrease of 8.2%. Affected by this, China’s IC export growth rate dropped to 3.5% in 2022 and -5% in 2023, ending five consecutive years of double-digit growth.

However, since the beginning of 2024, the situation has started to improve, the report says. In August, China’s IC exports reached RMB 95.18 billion, a year-on-year increase of 18.2%. The export value has seen year-on-year growth for 10 consecutive months.

ICs are considered a typical cyclical industry, with cycles averaging every four to five years. Analysts cited by the report believe that the industry is currently emerging from the shadow of recession. Innovations in AI applications, such as ChatGPT, along with the trends of automotive electrification and intelligence, will continue to drive the stabilization and upward trajectory of the IC industry.