The Chinese semiconductor market has shrunk by more than 12 percent to reach 2020 levels

China has suffered a major setback as its semiconductor production fell 12.1% to 25.9 billion units in April, the lowest since December 2020, media reported on Monday. Broken supply chains have paralyzed some of the country’s largest producers amid logistics problems.

“China’s monthly chip production has fallen to its lowest level since 2020 as tough locks in Shanghai and other cities have disrupted production in the following areas, from cars to robotics,” the South China Morning Post reported, citing data released. National Bureau of Statistics. According to the Shanghai Automobile Dealer Association, not a single car was sold in April, while the city normally sells about 4,000 cars daily.

In April last year, local chip production increased by 29.4 percent compared to the same period last year and amounted to 28.6 billion units. Chip imports to China also declined in the first four months of this year. Shanghai seeks to resume work and allow normal life to resume from June 1. It has stopped transmitting Covid-19 to 15 of the 16 counties, according to a news conference on prevention and control of epidemics on Monday. Currently, the number of people living in “closed management areas” has decreased by no more than 1 million, and the epidemic is actually under control, reports Xinhua.

Shanghai has planned its work to combat the epidemic for the near future, dividing it into three phases, said Shanghai Vice Mayor Zong Ming. From June 1 to mid-late June, Shanghai will fully restore the normal order of production and life throughout the city with standard measures to prevent and combat the epidemic, strictly preventing any resumption of the epidemic, said Tsung.

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