Tech war: China’s chip imports surge as firms stockpile ahead of fresh US restrictions

Amjad Ali August 7, 2024

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In the first seven months of 2024, chip imports totalled 308.1 billion units, worth about US$212 billion, according to data published on Wednesday by the General Administration of Customs. That marked a 14.5 per cent year-on-year jump in volume and 11.5 per cent increase in dollar value.

The surge in IC imports reflects expectations that the US will impose fresh unilateral restrictions on the mainland’s access to HBMs, which a Reuters report on Tuesday described as the impetus for mainland Big Tech firms – including Huawei Technologies and Baidu – to stockpile such chips made by Samsung Electronics.

A 3D rendering of high-bandwidth memory chips bundled with a processor inside a server. Photo: Shutterstock

That scramble for chips has resulted in mainland China accounting for 30 per cent of Samsung’s HBM revenue in the first half of this year, according to the Reuters report.

China’s total IC imports in 2023 was valued at US$349 billion, down 15.4 per cent from 2022.

Customs data also showed that mainland semiconductor exports from January to July reached 166.6 billion units, up 10.3 per cent from a year earlier. Total value during that period rose 22.5 per cent year on year to US$90 billion.

China’s IC exports reflected strong overseas demand for so-called legacy chips that are widely used in cars, home appliances and various consumer electronics products. In July alone, IC exports reached 27.3 billion units worth US$13.9 billion, according to the customs data.

That increase comes amid a recovery in consumer electronics products, including smartphones. Global smartphone shipments expanded 12 per cent in the June quarter, according to data from market research firm Canalys.

Mainland China’s semiconductor exports from January to July reached 166.6 billion units, up 10.3 per cent from a year earlier. Photo: Shutterstock

If Washington enacts new semiconductor restrictions, its rules are expected to cover memory chips categorised as HBM2 and more advanced iterations that include HBM3 and HBM3E, as well as the tools required to make these products, according to the Bloomberg report.

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Amjad Ali August 7, 2024

0 0 1 minute read