China's semiconductor output shrinks to 2020 level

Beijing, May 16

China has suffered a major setback as its semiconductor output shrank 12.1 per cent to 25.9 billion units in April, its lowest since December 2020, the media reported on Monday.

Disrupted supply chains amid logistics issues have paralysed some of the country's largest manufacturers.

"China's monthly output of chips shrunk to its lowest level since 2020, as strict lockdowns in Shanghai and other cities disrupted production in downstream industries from cars to robotics," reports South China Morning Post, quoting data released by the National Bureau of Statistics.

According to the Shanghai Automobile Dealers Association, not a single vehicle was sold for the whole month of April while in the normal course, about 4,000 vehicles are sold daily in the city.

In April last year, local chip output surged 29.4 per cent year on year to 28.6 billion units.

China's chip imports also fell in the first four months of this year.

Shanghai aims to reopen and allow normal life to resume from June 1.

It has cut off the community transmission of Covid-19 in 15 out of its 16 districts, according to a press conference on epidemic prevention and control held on Monday.

At present, the number of people living in "closed-off management areas" has dropped to no more than 1 million, and the epidemic has been effectively brought under control, reports Xinhua news agency.

Shanghai has planned its epidemic control work for the coming period, dividing it into three stages, said Zong Ming, Vice Mayor of Shanghai.

From June 1 to mid-late June, Shanghai will fully restore the normal order of production and life across the city with standard epidemic prevention and control measures, while strictly preventing any resurgence of the epidemic, according to Zong.