China’s integrated circuit (IC) output fell for the second consecutive month in October, revealing supply bottlenecks due to limited global chip production capacity, reports the South China Morning Post. China’s IC output dropped to 30.1 billion units in October from 30.4 billion in September, and a record-high of 32.1 billion in August, the National Bureau of Statistics said. Chip output was up 22.2% for the month year-on-year, the agency added.
While China’s IC statistics do not provide a detailed breakdown of product categories, overall output offers a rough measurement of the country’s efforts to reduce its reliance on imports and boost domestic semiconductor production, which has become a national priority amid Beijing’s drive for technological self-sufficiency.
The fall in the past two months could be due to the impact of disruptions in the global semiconductor supply chain, analysts said. The lead time for chip-making equipment, referring to the time between when an order is placed and when the equipment reaches the factory floor, has extended to 12 months, according to a recent note from Shanghai-based research company ICWise. The average delay has reached six months, hindering expansion plans at Chinese foundries.