China's integrated circuit industry sales increased by 11.8% year-on-year in January-June

The latest data from SIA shows that the global semiconductor market fell 14.5% year-on-year in the first half of 2019. Affected by the decline in the global semiconductor market, the growth rate of China's integrated circuit industry has declined.

According to statistics from the China Semiconductor Industry Association, the sales of China's integrated circuit industry from January to June 2019 was 304.82 billion yuan, an increase of 11.8% year-on-year, a slight increase from the first quarter. Among them, the design industry increased by 18.3% year-on-year, with sales of 120.61 billion yuan; the manufacturing industry increased by 11.9% year-on-year, with sales of 82 billion yuan; the packaging and testing industry sales were 102.21 billion yuan, a year-on-year increase of 5.4%.

Previously, the World Semiconductor Trade Statistics Association (WSTS) lowered its forecast for global integrated circuit sales in 2019 in June, from a 2.6% increase excluding memory predicted in November last year to a 12.1% year-on-year decrease. The reason is that the market conditions continue to deteriorate, the demand for smartphones is saturated, and the impact of many factors such as the Sino-US trade friction.

According to customs statistics, China imported 192.92 billion integrated circuits from January to June 2019, down 5.3% year-on-year; the import value was US$137.62 billion, down 6.9% year-on-year. China exported 98.96 billion integrated circuits, down 8.5% year-on-year; the export value was US$45.75 billion, up 17.1% year-on-year.

Gu Wenjun, chief analyst at Strategy Analytics, believes that not only will China's chip imports decline this year, but 2018 will be the year when the number of imported chips in China reaches its highest point in history, and the percentage (the proportion of imported chips to global chips) will reach its highest point in history. The proportion of imported chips in China will continue to decline in the future.