China imported 108.2 billion integrated circuits (IC) between January and March this year, down 22.9 percent from the same period last year, according to data by the General Administration of Customs, South China Morning Post news report said.
The total value of chip imports dropped 26.7 percent to $78.5 billion, down from $107.1 billion last year, according to the data.

China’s IC exports fell 13.5 percent to 60.9 billion units in the first three months of 2023, compared with a 4.6 percent drop a year ago. The total value of the exports dropped 17.6 percent.

This drop reflects how geopolitical tensions and increased US sanctions on China have hampered semiconductor business between the country and the rest of the world.
United States President Joe Biden recently enacted into law the Chips and Science Act that enables the US to give $53 billion in incentives to attract more chip manufacturing in the country.

Meanwhile, the Indian government approved Rs 76,000 crore ($10 billion) to attract investments in the field of semiconductors and display manufacturing.

India and the United States last month inked an agreement for establishing semiconductor supply chain and innovation partnership under the framework of India-US Commercial Dialogue.

The global semiconductor sales increased 3.3 percent to reach an all-time high of $574 billion for 2022, according to the latest data from Semiconductor Industry Association (SIA).