China's integrated circuit imports saw a sharp decline in terms of volume in the first quarter of 2022, but the import value jumped significantly, due to soaring prices of the crucial component globally, according to Chinese customs data on Monday.

During the three months, the volume of integrated circuit imports hit 186.08 billion units, a year-on-year decrease of 11.4 percent, while import values saw an increase of 10 percent over 2021 levels in the first quarter standing at 903.76 billion yuan ($134.36 billion), data from the General Administration of Customs (GAC) showed.

China imported 45.76 billion units of integrated circuit in April, down from 48.36 billion units in the previous month, according to the GAC.

Aside from global inflation and the surging price of raw materials for integrated circuit manufacturing, "human factors" were also linked to the surge of import value while volumes decline, Xiang Ligang, director-general of the Beijing-based Information Consumption Alliance, told the Global Times on Monday.

"Some major integrated circuit producers have kept their normal capacity amid a global chip shortage to minimize risk and increase their profit," Xiang noted.

Meanwhile, domestic production of integrated circuit has been affected by outbreaks of the COVID-19 in some major manufacturing bases, particularly Shanghai and the broader Yangtze River Delta region, though various measures have been put in place to minimize disruptions.

Across the domestic integrated circuit industry, Shanghai-based large semiconductor producer SMIC said on April 27 that 60 percent of its employees are subject to a closed-loop operation mechanism and that operations remained normal.

Another major producer Huahong Group also redirected 6,000 employees before the implementation of strict anti-epidemic restrictions in Shanghai on March 27.

Data from the National Bureau of Statistics showed that domestic produced integrated circuit volume in March 2022 recorded a year-on-year decrease of 5.1 percent at 28.5 billion units.

"Even though Shanghai has taken measure to secure the normal operation of integrated circuit enterprises amid quarantine policies, their capacities were affected more or less but the decline was within the reasonable range," Xiang noted.

Xiang suggested that integrated circuit production line needs less workers than other manufacturing industries and also requires sterile operating environment, which reduce the risk for spreading the virus.

"China's integrated circuit import volume and domestic production capacity will recover and stabilize after the latest outbreaks are contained," said Xiang.

Global Times