According to a media report on Friday, China’s chip imports have declined by 23% in the first quarter of 2023 as India and the US strengthen their local semiconductor manufacturing capabilities.

The South China Morning Post has reported that China imported 108.2 billion integrated circuits (IC) between January and March this year, a decrease of 22.9% compared to the same period last year, according to data from the General Administration of Customs. Additionally, the total value of chip imports has decreased by 26.7% to $78.5 billion compared to $107.1 billion in the previous year.

The report also mentioned that China’s IC exports dropped by 13.5% year-on-year to 60.9 billion units in the first three months of 2023, compared to a 4.6% drop last year, with the total value of the exports declining by 17.6%. The data suggest that geopolitical tensions and increased US sanctions on China have significantly affected the semiconductor business between China and the rest of the world.

Meanwhile, the government approved Rs 76,000 crore ($10 billion) in India to attract semiconductors and display manufacturing investments. Additionally, Vedanta and Foxconn signed a Memorandum of Understanding with the Gujarat government last year to invest Rs 1,54,000 crore in establishing the semiconductor and display manufacturing plant, India’s first.

In the US, President Joe Biden signed the Chips and Science Act last year, which provides $53 billion in incentives to attract more chip manufacturing in the country.

Recently, India and the US have agreed to establish a semiconductor supply chain and innovation partnership under the framework of the India-US Commercial Dialogue. The developments in both the US and India demonstrate a significant effort to reduce dependence on Chinese semiconductor manufacturers, which have dominated the global market for many years. The decline in China’s chip imports indicates the success of these efforts, and it remains to be seen how this trend will continue in the future.