Editing by Kate Yuan

China’s chip production increased by 33.3% in 2021, and automotive chips supply showed a promising trend, according to the information released at the February 28 press conference by the Ministry of Industry and Information Technology (MIIT).

Source: The State Council Information Office

Tian Yulong, Chief Engineer and Spokesman of MIIT, said “China is the world's largest and fastest-growing IC market that can provide broad opportunities for global enterprises. At the same time, China is also an important producer and supplier of integrated circuits, and has been making our contribution to the global IC industry.”

Although the automotive chip shortage has gradually eased, there is still a gap between the demand of automobile makers and the production plan of parts suppliers.

Since most of the global chip companies have increased the production and supply of vehicle-grade chips, new production capacities will also be released this year, and the supply capacity of some domestic chip products is gradually improving.

MIIT’s Vice Minister Xin Guobin mentioned that the monthly production and sales of automobiles in the country have recovered since the fourth quarter of last year. The automobile production and sales stood at 26.082 million and 26.275 million, respectively, a year-on-year increase of 3.4% and 3.8%. In January this year, these numbers reached 2.422 million and 2.531 million, up by 1.4% and 0.9% year on year.

He said that MIIT will take multiple measures to maintain the stable operation of the auto industry. An online supply and demand platform for automotive chips will be built to improve the upstream and downstream cooperation of the industrial chain.

MIIT will guide vehicle and parts companies to rationally schedule production, and improve resource allocation efficiency to minimize the impact of chip shortages. Domestic chip production and supply capabilities will be boosted in order.

Multinational chip companies will be encouraged to increase the supply for the Chinese market, Xin added.