Decline in U.S. Microchip Exports: Reasons and Implications Revealed in Latest Data
Decline in U.S. Microchip Exports for Second Consecutive Year
Recent data from the United States reveals a continued decrease in microchip exports to the country, marking the second year in a row of decline. Since the beginning of this year, exports have dropped by approximately 20%.
Decrease in Exports
In the first seven months of 2022, the decline in microchip exports reached 15%, and this figure has further worsened to 19.2% during the current year. Expert Igor Dakhtler attributes this decline to the increased storage capacity available in the market and the restrictions imposed by the United States on exports to China.
Lowest Level in Over a Decade
The pace of decline and the value of microchip exports have reached their lowest level since 2009, when sales plummeted by a record 41% to only $10.4 billion. Dakhtler explains that the decrease in exports is directly linked to a global reduction in demand for semiconductors. In 2020, there was a shortage of semiconductors, but in 2021, manufacturers were able to meet the demand, resulting in an excess of products and a subsequent decrease in demand. Dakhtler emphasizes that the semiconductor market is still struggling to regain growth.
China’s Declining Import Share
China’s import of microchips from the United States has significantly declined by 51%, equivalent to a reduction of $1.9 billion, bringing the total to $1.85 billion. Over the past two years, China’s share of US microchip imports has dropped from 33% in 2021 to 13% this year. Dakhtler highlights that this can be attributed to the ban imposed by the United States on the supply of the latest generation of semiconductors and related equipment to China.
Taiwan’s Increased Microchip Purchases
In light of China’s diminishing import share, Taiwan has emerged as the largest buyer of American microchips. However, even Taiwan has reduced its purchases by a mere 1%, amounting to $2.25 billion.