The National Bureau of Statistics of China, on Monday, April 18, published integrated circuits data for the first quarter of 2022.
China’s output of semiconductors shrunk 4.2% in the first quarter to 28.5 billion units. It was China’s worst quarter since the first quarter of 2019.
According to Bloomberg, the decrease in chip output happened as consumer electronics demand softened. Besides, Covid-triggered lockdowns in some cities disrupted the production.
Chinese authorities imposed traffic controls amid the pandemic. So the country’s biggest chip makers are having a hard time finding components. Among them are Semiconductor Manufacturing International Corp. and Hua Hong Semiconductor.
The South China Morning Post cited a WeChat post of Richard Yu, the Executive Director of Huawei Technologies Co. He said that vehicle assemblers across China would have to suspend production in May if suppliers in Shanghai and its neighboring areas remained closed.