Chinese semiconductors 'plummet' with no end in sight

China’s semiconductor output fell nearly 15% in the first quarter from a year earlier, data from the National Bureau of Statistics showed on April 18. Smartphone production also fell 13.8% in the same period as domestic brands such as Oppo, Vivo and Xiaomi continued to struggle with sales.

Currently, domestic Chinese manufacturers no longer have access to the most advanced silicon manufacturing technology and machinery.

In addition to falling domestic sales, trade tensions between Washington and Beijing have also pushed international electronics brands like Apple to shift production outside the mainland. The country’s tech manufacturing sector is facing increasing competition from factories in India and Vietnam.

The Biden administration's imposition of a series of trade controls targeting China's semiconductor industry has also somewhat limited Beijing's ambitions to compete in the advanced chip race.

Also in the report, personal computer production fell the most among the electronic products listed, causing China's total industrial output to rise by just 3.9% in March. The country's gross domestic product grew 4.5% in the first quarter compared to the same period last year.

Shares of Semiconductor Manufacturing International Corp (SMIC), the country’s largest chipmaker, fell as much as 5.5% in Hong Kong after the official data was released. Meanwhile, phone maker Xiaomi also lost 2% of its market capitalization.

According to Bloomberg

Source: https://vietnamnet.vn/ban-dan-trung-quoc-lao-doc-khong-thay-diem-dung-2133968.html