China’s integrated circuit (IC) output dropped 17% in the first two months of 2023, as the country’s semiconductor industry grappled with economic headwinds and escalating US trade sanctions, reports the South China Morning Post.
Production of ICs in January and February totalled 44.3 billion units, marking a stark contrast with the same period last year when chip output fell just 1.2% to 57.3 billion units, according to data released by the National Bureau of Statistics (NBS) on Wednesday.
The percentage drop also exceeded the 11.6% decline recorded for the whole year of 2022. Chinese statistics agencies typically combine output data for January and February, when manufacturing activity often slows due to the Lunar New Year holiday.