Beijing, China – October 2, 2024 – China’s integrated circuit (IC) exports have experienced a remarkable recovery in 2024, showing strong growth despite recent global downturns in the semiconductor industry. According to customs data reported by People’s Daily, IC exports from China in the first eight months of 2024 reached $104 billion, representing a 24.8% year-on-year increase.
In contrast, automotive exports during the same period totaled $77 billion, further underscoring the significant role of ICs in China’s export economy. The report highlights that over the past decade, the value of China’s IC exports has grown by more than 1.5 times, demonstrating the country’s increasing dominance in the global chip market.
Long-Term Growth Despite Industry Challenges
In 2023, China’s IC export value reached $136 billion, a dramatic 155.9% increase compared to 2014. However, the global chip industry faced a significant downturn from 2022 to 2023. According to the Semiconductor Industry Association (SIA), global semiconductor sales in 2023 totaled $526.8 billion, an 8.2% year-on-year decrease. This downturn impacted China’s IC export growth, which slowed to 3.5% in 2022 and contracted by 5% in 2023, ending five consecutive years of double-digit growth.
Signs of Recovery in 2024
Despite the challenges of the previous two years, the report indicates that the situation began to improve in early 2024. In August alone, China’s IC exports reached $13.5 billion, marking an 18.2% year-on-year increase. This growth in August is part of a broader trend, with China’s IC exports showing year-on-year growth for 10 consecutive months.
The resurgence of China’s IC exports is a promising sign for the global semiconductor market, which has faced supply chain disruptions, geopolitical tensions, and fluctuating demand over the past few years. As the world’s largest producer of semiconductors, China’s recovery is expected to have a significant impact on the global supply chain, potentially stabilizing prices and addressing ongoing shortages.
Looking Ahead
As China continues to strengthen its position in the global semiconductor market, its IC export growth is expected to remain robust. Industry analysts are optimistic that the recovery in 2024 signals a broader turnaround for the semiconductor industry, with China playing a central role in meeting global demand for advanced chips and integrated circuits.
