China’s semiconductor production hits record high in July

Amid the global semiconductor shortage, it was reported that in the first half of this year, China’s semiconductor production reached 203.6 billion, up 47.3% from the same period of the previous year. Meanwhile, in China, the number of cars produced in July 2021 decreased by 15.8% compared to the same period of the previous year due to chip supply problems.

The Chinese government announced that China’s IC production in July reached 31.6 billion units, a 41.3% increase from the same month of the previous year, setting a new record for monthly production through a surge in semiconductor demand and strengthening production capacity. Semiconductor production is a national project in China, and it is also one of the priorities to prepare for technological competition with the United States. In China’s industrial production, the value of computer, telecommunication and electronic equipment manufacturing increased by 13% compared to the same month of the previous year, exceeding the overall growth rate of industrial production of 6.4%.

In order to meet semiconductor demand and increase semiconductor production, Chinese semiconductor companies are making various efforts. For example, Huaian Imaging Device Manufacturer Corporation (HIDM), a Chinese semiconductor fab, went bankrupt on May 30, 2021, but was sold to state-owned Rongxin Semiconductor in July 2021 for 1.66 billion yuan. According to analysts, Longsin Semiconductor is likely to resume semiconductor manufacturing projects that were halted due to bankruptcy. In response to the recent shortage of semiconductors, the Chinese government seems to be trying to increase semiconductor production lines even a little.

In July, it was announced that a Chinese company and a semiconductor company affiliated with Wingtech had acquired a British semiconductor company. In addition, SiEn Integrated Circuits, founded by Zhang Rujing (張汝京), the founder of SMIC, the largest chip maker in China, has already started producing 8-inch wafers in Qingdao, China, and is currently testing a 12-inch wafer production line.

According to the report, Chinese companies are focusing on semiconductor production, and it is expected that Chinese semiconductor production for automobiles and home appliances will also increase. Related information can be found here.