Integrated Circuits (ICs) (HS: 85423990) are miniature electronic components widely used in industries such as electronics, telecommunications, computers, consumer electronics, and automotive manufacturing, serving as the cornerstone of modern information society.

       China's IC industry has evolved from a follower to achieving systemic breakthroughs, establishing itself as one of the world's largest IC markets. In 2024, China's IC market reached a value of RMB 1.2 trillion, marking a 12.3% year-on-year growth and accounting for 25% of the global market share. It is projected to maintain a compound annual growth rate (CAGR) of 7.7% in the coming years.

       According to customs data, from January to March 2025, China's IC exports totaled approximately USD 7.29 billion, reflecting an increase of USD 435 million (+6.34% YoY), while IC imports amounted to USD 18.91 billion, up USD 1.01 billion (+5.64% YoY).

       Export Price Analysis:
       The average export price of ICs in Q1 2025 was USD 0.17 per unit, down 8.97% YoY. This decline was primarily attributed to a global oversupply in the IC market during the quarter, driven by explosive growth in mature-node production capacity, which disrupted supply-demand equilibrium. Additionally, intensified U.S. tariffs compelled Chinese exporters to reduce prices to maintain competitiveness. Meanwhile, the average import price of ICs fell slightly to USD 0.25 per unit (-0.49% YoY).

      Export Volume Analysis:
IC export volume surged to 42.92 billion units in Q1 2025, a 16.82% YoY increase. This growth was fueled by expanded mature-node production capacity in China, which enhanced price competitiveness, and rising demand for mid-to-low-end chips in emerging markets such as India and Southeast Asia. Supportive factors like favorable exchange rates and trade policies further bolstered export momentum.

       Regional Trade Analysis:
       Asia remains the primary export destination for China's integrated circuits (ICs), accounting for 95.1% of total exports. From January to March 2025, exports to key regions were as follows:

Asia: USD 6.93 billion (+6.51% YoY)

Europe: USD 190 million (+4.76% YoY)

Africa: USD 117.6 million (+248.47% YoY)

Latin America: USD 101 million (+6.34% YoY)

Oceania:USD 3.6 million (+39.75% YoY)
Only North America saw a decline, with exports dropping to USD 519.2 million (-18.95% YoY).

       Top Export Destinations (Countries/Regions):
In Q1 2025, Hong Kong, China was the largest export market for Chinese ICs, with exports totaling USD 3.738 billion, followed by Taiwan, China (USD 736 million) and India (USD 481 million).

       Notable Growth Case – Vietnam:
       Exports to Vietnam surged by 69.37% YoY in Q1 2025. This growth stems from Vietnam’s emergence as a global hub for smartphone, computer, and consumer electronics assembly, driving a spike in IC demand. Additionally, Chinese manufacturers adopted Vietnam-based assembly strategies to bypass heightened U.S. tariffs, further amplifying demand for Chinese ICs in Vietnam.

       Key Export Provinces:
       The top five provinces by export value were Guangdong, Jiangsu, Shanghai, Zhejiang, and Sichuan, collectively contributing 93.49% of total exports. Other notable provinces included:

Beijing: USD 111 million

Hubei: USD 87.22 million

Guangxi: USD 57.51 million

Anhui: USD 57.41 million

Gansu: USD 34.75 million

       Industry Context:
       As the world’s largest IC consumer market, China is advancing into a domestic substitution phase. The rapid development of AI, 5G communications, IoT, and other emerging technologies is accelerating industrial transformation, with ICs acting as the core enabler of modern information systems.

       Challenges and Outlook:
       Despite significant progress, China’s IC industry faces challenges. Beyond monitoring global trade dynamics, enterprises must prioritize talent development, R&D investment, and independent innovation capabilities to achieve high-quality growth and strengthen competitiveness in the global arena.