Semiconductor Chips Market Grows In China

Semiconductor devices or chips are considered the most important element of any electrical device, mobile phone, or vehicle. These chips enable technological development that is very crucial to maintain the growth of the economy, and safety of a particular nation and helps to compete in the global market. 

CHINA IS THE LARGEST MANUFACTURER AND EXPORTER OF SEMICONDUCTOR CHIPS IN THE WORLD

Based on the information released by Import Export data for the year 2021, the global demand for semiconductor chips reached 1.15 trillion units. China became the number one exporter of semiconductor chips in that year by fulfilling the demand of 35% of the population in world. The trade report released by China Export Data for the year 2021 says that there was a boom in the exports of these chips in the world from China. 

The top 10 semiconductor manufacturing companies in China as of 2020 were:

LATEST INSIGHTS ABOUT EXPORTS AND IMPORTS OF SEMICONDUCTOR CHIPS TO AND FROM CHINA

Based on China Export Data for the month of December 2022, the country exported a total of USD 1.35 billion worth of Semiconductor chips to the world. On comparing this value with that of December 2021, we find that exports have fallen by USD 3.61 billion which is roughly 73% (from USD 4.96B to USD 1.35B). 

Major export destinations of semiconductor chips from China were:

• Hong Kong (USD 971 million)
• The Netherlands (USD 725 million)
• Brazil (USD 264 million)
• Germany (USD 204 million)
• South Korea (USD 182 million)

On the other hand, after analyzing China Import Data for the same duration, i.e., December 2022, it is clear that the country imported semiconductors worth USD 1.96 billion in a single month. Imports also followed a downward trend when compared with the values of the same month in the previous year. They tumbled down by USD 1.04 billion which is approximately 34.7% (from USD 2.99B to USD 1.96B).

Major import partners of china in December 2022 for semiconductor chipsets were:

• The USA (USD 826 million)
• Japan (USD 471 million)
• Malaysia (468 million)
• Taiwan (USD 278 million)
• South Korea (USD 162 million)

LAST VERDICT

At the end of this blog, we would like to conclude by stating that China is a net importer of these chips. China is one the biggest purchasers of semiconductor chips and a dominant exporter too. This is because the quality of Chinese chips is not that great and sophisticated but are pocket-friendly and cheap due to which their demand in the global market remains high. Just the distinguishing feature of the Chinese semiconductor chips is that they are less complicated and hence, easy to collaborate and integrate into any electronic device like a TV, mobile phone, or any small vehicle. Despite bans that are levied on Chinese chips, China is the largest trader of semiconductor chips as per Global Trade Data for many years. We also estimate that China will remain at the top position for more years to come in the trade of semiconductor chips. 

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