October 17, 2024 /SemiMedia/ — According to reports, Mainland China's integrated circuit (IC) trade is expected to grow in 2024, driven by a rebound in smartphone demand, infrastructure development for generative artificial intelligence (AI), and expansion in the automotive sector. Reports predict that IC imports and exports will increase by 5.2% and 11.4% respectively compared to 2023. However, Mainland China’s chip trade deficit is forecast to widen by 3% to $238.35 billion.

IC imports are estimated to reach around $320 billion in 2024, with Taiwan region, South Korea, and Malaysia as the top three suppliers. Taiwan holds an advantage in wafer manufacturing and packaging, while South Korea is a leader in memory chips, and Malaysia is a key region for packaging and testing. Since the U.S. initiated a semiconductor trade war with Mainland China in 2019, the share of IC imports from the U.S. has steadily declined, falling below 3% by 2023.

Mainland China's chip exports are projected to reach $95 billion in 2024, marking a significant rise in IC exports—the second highest level since the pandemic—highlighting progress in the country’s efforts to develop its own semiconductor industry. Export destinations are concentrated in Asia, with Taiwan, South Korea, Vietnam, and Malaysia making up 70% of the total chip export value.

According to a report from Mainland China's customs office, in May alone, the country imported $30 billion worth of integrated circuits, bringing the total number of imported chips since January 2024 to 213 billion units, valued at approximately $148 billion, a 14.9% increase year-on-year.

Mainland China exported 25.3 billion integrated circuits in May, worth $12 billion. Since January, total semiconductor exports have reached $62 billion, reflecting a 21.2% growth compared to the previous year. Beyond chips, the country’s exports of computers and related components have also risen by 6.1% year-on-year.