China’s semiconductor output posts the biggest monthly decline
As India and the US have ramped up domestic semiconductor manufacturing, China witnessed its biggest-ever monthly decline in chip manufacturing in August owing to Covid restrictions and weakening demand.
This is also the second consecutive month of decline for chip manufacturing. In July, the output nosedived 16.6 percent to 27.2 billion units. The local output of microcomputers fell 18.6 percent to 317.5 billion units in August. In August, domestic manufacturing activity contracted for the first time in three months, the report mentioned.
According to the South China Morning Post, the production of integrated circuits (ICs) slumped 24.7 percent year on year to 24.7 billion units, marking the largest single-month decrease since 1997.
A record 3,470 chip-making companies “went out of business in the first eight months of the year”, according to statistics from the business database platform Qichacha.
The slump in chip production in China is coming as both India and the US ramp up efforts to bolster local chip manufacturing.
The Gujarat government has partnered with Vedanta and Foxconn, aiming for an investment of Rs.1.54 lakh crore to achieve self-reliance in the field of semiconductor manufacturing.
India’s semiconductor component market is likely to reach $300 billion in cumulative revenues by 2026, as ‘Make in India’ and production-linked incentive (PLI) schemes will boost local sourcing of semi-components in the coming years, according to the report by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research.
The Indian government has announced an outlay of Rs.76,000 crore (around $10 billion), under its PLI scheme, separately for the development of a semiconductor and display manufacturing electronics ecosystem.
[With Inputs from IANS]
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Good development.