China’s purchases of machines to make computer chips last month fell to their lowest level in more than two years, hammered by cratering electronics demand and new US export restrictions that are limiting the ability of Chinese firms to buy the most advanced equipment.
Chinese firms imported US$2.3 billion of machines used in semiconductor manufacturing last month, down by more than 40 percent from a year earlier to the lowest level since May 2020, according to customs data released on Wednesday.
Imports from the six major supplying nations, including the US, Japan and the Netherlands, all fell at a double-digit pace in the month, even before some of those nations agreed to join the US in further limiting shipments of the most advanced gear to China.
Photo: Reuters
Imports of computer chips also fell as makers of semiconductors for smartphones and PCs struggle with plummeting demand for their products less than a year after being unable to produce enough to meet orders.
The US sanctions announced in October have caused major foreign firms to limit or cease the supply to Chinese companies of equipment to make the most advanced chips, although machines used to make older and slower chips can still be shipped.
The US is negotiating with the Dutch and Japanese governments to convince them to join its unilateral sanctions, with people with knowledge of those talks telling Bloomberg that they are likely to adopt at least some of the sweeping measures of the US.
The three-country alliance would represent a near-total blockade of China’s ability to buy the equipment necessary to make leading-edge chips.
The US rules restricted the supply from US suppliers Applied Materials Inc, Lam Research Corp and KLA Corp.
Japan’s Tokyo Electron Ltd and Dutch lithography specialist ASML Holding NV are the two other critical suppliers that the US needs to make the sanctions effective, so if their governments adopt the curbs too, it would be a significant victory in the US attempt to cripple the development of China’s semiconductor industry.
China has filed a complaint with the WTO to try and overturn the export controls, although any decision on that would likely take years to be decided.
The trade data also showed that China’s purchases of computer chips were down by about 26 percent last month for a 2 percent decline in the first 11 months of this year.
Chinese demand for chips has been weak this year due to supply chain disruptions, a slowing domestic economy and falling demand globally for products such as smartphones.
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
SECTOR LEADER: TSMC can increase capacity by as much as 20 percent or more in the advanced node part of the foundry market by 2030, an analyst said Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to lead its peers in the advanced 2-nanometer process technology, despite competition from Samsung Electronics Co and Intel Corp, TrendForce Corp analyst Joanne Chiao (喬安) said. TSMC’s sophisticated products and its large production scale are expected to allow the company to continue dominating the global 2-nanometer process market this year, Chiao said. The world’s largest contract chipmaker is scheduled to begin mass production of chips made on the 2-nanometer process in its Hsinchu fab in the second half of this year. It would also hold a ceremony on Monday next week to
TECH CLUSTER: The US company’s new office is in the Shalun Smart Green Energy Science City, a new AI industry base and cybersecurity hub in southern Taiwan US chip designer Advanced Micro Devices Inc (AMD) yesterday launched an office in Tainan’s Gueiren District (歸仁), marking a significant milestone in the development of southern Taiwan’s artificial intelligence (AI) industry, the Tainan City Government said in a statement. AMD Taiwan general manager Vincent Chern (陳民皓) presided over the opening ceremony for the company’s new office at the Shalun Smart Green Energy Science City (沙崙智慧綠能科學城), a new AI industry base and cybersecurity hub in southern Taiwan. Facilities in the new office include an information processing center, and a research and development (R&D) center, the Tainan Economic Development Bureau said. The Ministry
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
RSS