Compared with June, Chinese semiconductor manufacturers’ chip shipments in July increased and hit a record high. China’s semiconductor industry produces more than 1 billion integrated circuits (ICs) every day, but it will take a long time for China’s semiconductor production to exceed imports.
Chinese semiconductor manufacturers (including 3D NAND, DRAM and logic component manufacturers) manufactured 31.6 billion chips in July (a 41.3% increase compared to July 2020), exceeding 1 billion ICs per day. Judging from this figure, China’s semiconductor industry manufactured 30.8 billion chips in June and 29.9 billion ICs in May.
According to the National Bureau of Statistics, Chinese semiconductor manufacturers have produced 203.6 billion chips so far this year. South China Morning PostThe year-on-year increase of 47.3% is a very impressive result, especially considering that companies like SMIC cannot easily obtain the equipment they need from US companies because they are listed by the US government blacklist.
China’s semiconductor industry has always been subsidized by the government, helping tens of thousands of local chip designers to emerge. At the same time, Chinese semiconductor manufacturers have not been able to catch up with their Taiwanese or Western competitors, which is why the government has decided to only focus on supporting selected major chip manufacturers, such as SMIC and Hua Hong, and let smaller manufacturers Business bankruptcy or bankruptcy. Be absorbed by bigger players.
Recently, an unfinished wafer fab in Jiangsu Province, Huai’an Imaging Equipment Manufacturing Company (HiDM), was sold to state-controlled Rongxin Semiconductor for US$260 million. This is an example of such absorption.
At the same time, despite being sanctioned by the US government, China’s largest chip foundry company SMIC actually increased its production capacity and output this year, largely due to the surge in demand for various types of chips.