Major Chinese chip firms report strong H1 sales despite US crackdown

Several leading semiconductor companies in China, including the largest producer and major component suppliers, reported strong results in the first half of 2022, despite the US’ relentless crackdown against China’s chip industry.

The stellar performances came as market expectation for greater development in the Chinese semiconductor industry continues to build up, with major new development plans, as the US recently intensified efforts to contain China’s chip industry.

China’s largest chipmaker, Semiconductor Manufacturing International Corp (SMIC), reported better-than-expected revenue of $1.903 billion in the second quarter of this year, up by 3.3 percent from the previous quarter and up 41.6 percent year-on-year.

Yangzhou Yangjie Electronic Technology Co, which makes semiconductor spare components, reported first-half revenue of 2.951 billion yuan ($438 million), a year-on-year increase of 41.92 percent.

These reports came after US President Joe Biden on Tuesday signed into law the socalled CHIPS and Science Act, which aims to crack down on China’s semiconductor supply chain.

The growth reported by Chinese chip companies reflect years of innovation and input, Ma Jihua, a veteran technology analyst, told the Global Times.

The Chinese government gave the chip sector national priority, after the US government began to pursue a decoupling policy on the chip industry directed toward China years ago during the Trump administration era. The Chinese government announced several support policies for the industry, and input by the companies further spurred the sector’s progress, said Ma.

“It’s time to harvest years of efforts,” Ma said.

More efforts are on underway. The Lingang New Area in Shanghai on Friday announced a plan for the period through 2025, aiming to boost the scale of the IC industry. The new area will also foster five leading chip manufacturers in China and abroad.