Increasing US restrictions on exports of semiconductors and electronic chip components has led imports from China to hit a record low in 2023. The value of Chinese purchases fell 15.4% on a year-over-year basis, Bloomberg reported. annually, reaching 320 billion euros. Bloomberg said this is the largest decrease recorded since 2004, the year China began publishing customs data, and represents the second consecutive annual decline. Furthermore, shipments decreased by 10.8%. This situation had a negative impact on the Taiwan Semiconductor Manufacturing Company, which recorded a 4.5% decrease in annual sales, falling to 2.2 trillion New Taiwan dollars (around 65 billion euros), after a decline in 8.4% in December 2023, when sales fell to 176.3 billion New Taiwan dollars. Expectations of a rapid recovery in demand for chips and smartphones were dashed by disappointing results from Samsung and Foxconn. According to TrendForce, the uncertain outlook for demand in 2024 has led chipmakers to continue with production cuts to maintain a balance between supply and demand. TF International Securities analyst Kuo Ming-Chi also said that any improvement in demand for Android smartphones may not reach market expectations.
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