en.Wedoany.com Reported - Data released by the General Administration of Customs of China on June 22 shows that in the first five months of this year, China's chip imports decreased by 261 billion yuan year-on-year, while domestic semiconductor manufacturing equipment procurement increased by 47% year-on-year. Between this decline and rise, approximately 350 billion yuan in real money shifted from overseas suppliers to domestic production lines, reflecting a significant change in the supply-demand structure of China's integrated circuit industry.
During the same period, the Philadelphia Semiconductor Index experienced sharp fluctuations, with a single-day drop of up to 10.26%, the largest since March 2020, and the overall market value of the sector evaporated by over $1.2 trillion. Among individual stocks, Nvidia's market value evaporated by more than $300 billion in a single day, Micron Technology fell by 11% with a market value loss of approximately $127 billion, Marvell Technology dropped over 16%, Intel, SanDisk, and Western Digital fell over 11%, and Qualcomm and AMD dropped nearly 11%.
The data also shows that in the first four months of 2026, China's integrated circuit exports reached $103.5 billion, a year-on-year increase of 83.7%. Export volume increased by 13.7% year-on-year, reaching approximately 52.46 billion units. Based on this, the average export price of chips rose by about 52% year-on-year.
At the industry level, China has achieved mass production at the 7-nanometer process node, with steadily improving yields; mature process chips at 28 nanometers and above are largely domestically produced. The localization rate of semiconductor equipment has increased from 18% to over 30%, with imported equipment on domestic production lines being extensively replaced by domestic alternatives.
Analysts believe that the shift of chip orders to domestic suppliers is not a temporary risk-avoidance measure but has formed a closed-loop industrial chain from design and manufacturing to application. After terminal manufacturers switch to domestic chips, the cost of reverting to imported products increases, creating an ecosystem lock-in effect.
Industry observers point out that domestic chips are forming a positive cycle in terms of stable supply and cost control: increased orders drive capacity expansion, which in turn reduces costs and promotes technological maturity, accelerating the next wave of substitution.
