China's Chip Output Growth Slows Amidst US Tech War
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China's integrated circuit (IC) output growth slowed to single digits for the first time in 2023, marking a significant development in the intensifying US-China tech rivalry, reports the South China Morning Post.
The National Bureau of Statistics (NBS) revealed that IC output in November increased by 8.7% year-on-year to 37.6 billion units. While this represents continued growth, it marks a deceleration from the double-digit expansion seen earlier in the year. For the first eleven months of 2023, total IC output rose by 23.1% to 395.3 billion units.
The semiconductor sector remains a focal point in the US-China tech conflict. Washington recently tightened export controls on China's chipmaking equipment and software, adding 140 Chinese organizations to its trade blacklist. Beijing responded by launching an antitrust investigation into US chip giant Nvidia.
Despite these challenges, China's IC output continues to benefit from strong demand in key industries such as robotics and electric vehicles. The country's industrial robotics output surged by 29.3% in November, while electric vehicle production expanded by 51.1%.
China's IC exports also exhibited continued strength, reaching 271.6 billion units in the first eleven months, representing an 11.4% year-on-year increase. The value of these exports exceeded US$145 billion, reflecting an 18.8% increase from the previous year, indicating sustained momentum in China's production of "legacy chips."