China: Electronic Chip Market 2024

Electronic Chip Market Size in China

In 2021, the Chinese electronic chip market decreased by -15.3% to $X for the first time since 2015, thus ending a five-year rising trend. In general, the total consumption indicated a perceptible increase from 2012 to 2021: its value increased at an average annual rate of +4.3% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Over the period under review, the market attained the peak level at $X in 2020, and then contracted markedly in the following year.

Electronic Chip Production in China

In value terms, electronic chip production dropped to $X in 2021 estimated in export price. Over the period under review, the total production indicated a resilient increase from 2012 to 2021: its value increased at an average annual rate of +5.6% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, production increased by +71.9% against 2014 indices. The pace of growth was the most pronounced in 2013 when the production volume increased by 29% against the previous year. Over the period under review, production hit record highs at $X in 2020, and then reduced in the following year.

Electronic Chip Exports

Exports from China

In 2021, shipments abroad of electronic chips increased by 47% to X units, rising for the fifth year in a row after three years of decline. Over the period under review, total exports indicated a strong increase from 2012 to 2021: its volume increased at an average annual rate of +6.4% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, exports increased by +96.2% against 2016 indices. The most prominent rate of growth was recorded in 2013 when exports increased by 70% against the previous year. The exports peaked in 2021 and are expected to retain growth in years to come.

In value terms, electronic chip exports soared to $X in 2021. Overall, exports showed strong growth. The growth pace was the most rapid in 2013 with an increase of 64% against the previous year. Over the period under review, the exports reached the maximum in 2021 and are likely to see steady growth in years to come.

Exports by Country

Hong Kong SAR (X units) was the main destination for electronic chip exports from China, with a 60% share of total exports. Moreover, electronic chip exports to Hong Kong SAR exceeded the volume sent to the second major destination, Taiwan (Chinese) (X units), fivefold. The third position in this ranking was taken by Singapore (X units), with a 5.3% share.

From 2012 to 2021, the average annual growth rate of volume to Hong Kong SAR amounted to +6.5%. Exports to the other major destinations recorded the following average annual rates of exports growth: Taiwan (Chinese) (+7.7% per year) and Singapore (+0.6% per year).

In value terms, Hong Kong SAR ($X) remains the key foreign market for electronic chips exports from China, comprising 45% of total exports. The second position in the ranking was taken by Taiwan (Chinese) ($X), with a 14% share of total exports. It was followed by South Korea, with a 13% share.

From 2012 to 2021, the average annual rate of growth in terms of value to Hong Kong SAR totaled +8.8%. Exports to the other major destinations recorded the following average annual rates of exports growth: Taiwan (Chinese) (+15.0% per year) and South Korea (+22.7% per year).

Export Prices by Country

In 2021, the average electronic chip export price amounted to $X per unit, declining by -10.4% against the previous year. In general, the export price, however, showed strong growth. The pace of growth appeared the most rapid in 2016 an increase of 19%. The export price peaked at $X per unit in 2019; however, from 2020 to 2021, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices for the major foreign markets. In 2021, amid the top suppliers, the country with the highest price was South Korea ($X per unit), while the average price for exports to the Philippines ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was recorded for supplies to South Korea (+17.3%), while the prices for the other major destinations experienced more modest paces of growth.

Electronic Chip Imports

Imports into China

In 2021, after two years of decline, there was significant growth in supplies from abroad of electronic chips, when their volume increased by 64% to X units. In general, total imports indicated a temperate expansion from 2012 to 2021: its volume increased at an average annual rate of +3.9% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. As a result, imports reached the peak and are likely to continue growth in the immediate term.

In value terms, electronic chip imports soared to $X in 2021. Overall, total imports indicated a resilient increase from 2012 to 2021: its value increased at an average annual rate of +7.5% over the last nine-year period. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. Based on 2021 figures, imports increased by +57.2% against 2013 indices. The most prominent rate of growth was recorded in 2013 when imports increased by 22%. Over the period under review, imports reached the maximum in 2021 and are likely to see gradual growth in the near future.

Imports by Country

In 2021, Taiwan (Chinese) (X units) constituted the largest supplier of electronic chip to China, with a 54% share of total imports. Moreover, electronic chip imports from Taiwan (Chinese) exceeded the figures recorded by the second-largest supplier, Malaysia (X units), fivefold. The third position in this ranking was held by Japan (X units), with a 9.5% share.

From 2012 to 2021, the average annual growth rate of volume from Taiwan (Chinese) totaled +7.9%. The remaining supplying countries recorded the following average annual rates of imports growth: Malaysia (-0.6% per year) and Japan (+3.4% per year).

In value terms, Taiwan (Chinese) ($X), South Korea ($X) and Malaysia ($X) appeared to be the largest electronic chip suppliers to China, together accounting for 74% of total imports. These countries were followed by Japan, Vietnam, the Philippines, Singapore and Thailand, which together accounted for a further 17%.

Vietnam, with a CAGR of +20.6%, saw the highest rates of growth with regard to the value of imports, among the main suppliers over the period under review, while purchases for the other leaders experienced more modest paces of growth.

Import Prices by Country

In 2021, the average electronic chip import price amounted to $X per unit, which is down by -27.9% against the previous year. Over the period under review, import price indicated a perceptible expansion from 2012 to 2021: its price increased at an average annual rate of +3.5% over the last nine years. The trend pattern, however, indicated some noticeable fluctuations being recorded throughout the analyzed period. The pace of growth was the most pronounced in 2013 when the average import price increased by 29%. The import price peaked at $X per unit in 2020, and then reduced remarkably in the following year.

There were significant differences in the average prices amongst the major supplying countries. In 2021, amid the top importers, the country with the highest price was Vietnam ($X per unit), while the price for Thailand ($X per unit) was amongst the lowest.

From 2012 to 2021, the most notable rate of growth in terms of prices was attained by Vietnam (+8.1%), while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

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