China semiconductor production experienced its largest-ever decline in August

midian182

Posts: 8,497   +106
Staff member
In brief: China's semiconductor industry continues to suffer the effects of strict Covid policies, a struggling economy, and US sanctions. The country saw its largest-ever monthly drop in the production of integrated circuits in August, marking the sector's second consecutive month of decline.

The South China Morning Post reports that output of ICs was down 24.7% year-on-year to 24.7 billion units in August, the single largest monthly fall recorded since records began in 1997. Production volume was the lowest on record since October 2020.

This is the second month in a row that Chinese IC production has fallen; it was down 16.6% to 27.2 billion units in July. There had been a slight rebound in May and June, the result of lockdowns easing in Shanghai, where many assembly plants are located.

The SCMP writes that the decline can be attributed to new coronavirus outbreaks coupled with China's zero-Covid policy, as well as consumer spending cuts, power shortages caused by local heatwaves, and the global economic downturn. But a significant factor is likely to have been US sanctions.

Related reading: US-China semiconductor battle: Second and third order consequences

The Biden administration introduced more restrictions on tech exports to China last week in a bid to hamper the country's ability to "obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors," which the White House says are used to produce military systems including weapons of mass destruction. China's Global Times newspaper warned that the move would have dire consequences for the US.

The US previously introduced new export rules prohibiting Nvidia and AMD from selling high-end accelerators to China and Russia. The administration also has its entity list, with Huawei being the most famous name it contains. The Chinese tech giant has suffered enormously since its addition.

The Post notes that a record 3,470 companies in China, including those that use the Chinese word for "chip" in their registered names, brands, or operations, went out of business in the first eight months of the year. With the impact of the most recent US restrictions yet to be felt, there's likely more woe in store for the country's tech industry.

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DSirius

Posts: 380   +801
TechSpot Elite
But US govern pretended that liked the open, free market and advertised it heavily while building it's own army with the help of tech companies and also selling weapons and wars to the world.
Now it seems US govern do not like open, free market anymore and instead is promoting a new definition of egotism-selfishness: "Selfish people-nations are those who are more interested in themselves than in me".
If you are so good or allegedly the best than compete by the same rule for all, and let's see who is the best. If you are not able to compete by the same rules, which you claim others to respect, than you already lost.
And this is why and when, lame propaganda begin to spread.
 
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MaitieS

Posts: 177   +204
If you are so good or allegedly the best
HAHAHA I really don't know what is funnier the fact that you're accusing USA of not supporting free and open market compare to China or that China is much better in this meanwhile this whole article is about their production dropping after getting sanctions... Like from what I read they were really pissed on USA for that ban which just shows that they are as everyone already knew behind... but why should I expect techspot to be good with geopolitics, right? It's like expecting old people to know how to fix a computer ;)
 

DSirius

Posts: 380   +801
TechSpot Elite
HAHAHA I really don't know what is funnier the fact that you're accusing USA of not supporting free and open market compare to China or that China is much better in this meanwhile this whole article is about their production dropping after getting sanctions... Like from what I read they were really pissed on USA for that ban which just shows that they are as everyone already knew behind... but why should I expect techspot to be good with geopolitics, right? It's like expecting old people to know how to fix a computer ;)
Appologies, my post was rather for those who like to read between the lines and also can be taken as a different opinion or a "rant". Please disregard it and do not blame Techspot. Oh, and US govern is accusing here, and they will always be at the other tip of their accusing finger(s).
 
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MaitieS

Posts: 177   +204
Appologies, my post was rather for those who like to read between the lines and also can be taken as a different opinion or a "rant". Please disregard it and do not blame Techspot. Oh, and US govern is accusing here, and they will always be at the other tip of their accusing finger(s).
To be fair this is how biggest countries work. It's nothing new both of them wants to be/stay on top
 

DSirius

Posts: 380   +801
TechSpot Elite
To be fair this is how biggest countries work. It's nothing new both of them wants to be/stay on top
True. I wonder how other nations will handle this if they would be in US place, better, worse? And from what I see, more than half of them would handle worse. Personally I prefer that US can improve and learn from it's mistakes and become better.
 
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Revolution 11

Posts: 235   +329
Oh I'm sure ole Joe will pull the restrictions, AFTER the midterm elections...and of course will get his 10% fee. ;)
You really don't understand the politics going on here, do you? Both parties are becoming more hawkish on China. If anything, Biden is too DOVISH on China vs members of both parties.

There's no way these restrictions are getting pulled anytime soon.