Hong Kong, Aug 15 : China suffered a dramatic drop in production of semiconductors in July, owing to disruptions to supply chains due to the strict Covid rules in place according to the media report on Monday as the US intensifies its efforts to boost the manufacturing of chips in China with aid from allies like South Korea.According to figures published by the National Bureau of Statistics, the production of integrated circuits (ICs) decreased 16.6 percent year-on-year, to 27.2 billion units in December according to the South China Morning Post.
China has disclosed 27.5 billion and 28.8 billion units in June and May, respectively.
“The weak spot in the production of chip is another setback for China’s plans to increase local semiconductor production and reduce reliance on import chips” the report said.
US President Joe Biden last week signed the historic $280 billion CHIPS and Science Act into law.The law includes $52 billion for the development of the manufacturing of semiconductors in the US.
The CHIPS and Science Act is the US strategy to encourage chipmakers to change their strategy and set up factories in the US and reduce the dependence on China.
China has hit back at the US bill that aims to counter China’s chip drive.
“It is troubling for supply chains across the globe to see the US use more administrative interference in regular market competition, particularly when it comes to technologically advanced areas like semiconductors.” The Global Times reported on Sunday.
If Washington is determined to keep the so-called “chip war” running, it must be prepared for China to take on China the Chinese, it said.
na/sks
