China’s semiconductor output dips 17% in July amid US threat: Report

China suffered a sharp fall in semiconductor output in July amid supply chain disruptions due to strict Covid measures in place, the media reported on Monday, as the US doubles down on domestic chip manufacturing with help from allies like South Korea.

According to data released by the National Bureau of Statistics, the production of integrated circuits (ICs) dropped 16.6 per cent year-on-year to 27.2 billion units last month, reports South China Morning Post.

China had reported 27.5 billion and 28.8 billion units for May and June, respectively.

“The weakness in chip production is a further setback for China’s ambition to boost local semiconductor production and cut reliance on imported chips,” the report mentioned.