China semiconductor production experienced its largest-ever decline in August:
The South China Morning Post reports that output of ICs was down 24.7% year-on-year to 24.7 billion units in August, the single largest monthly fall recorded since records began in 1997. Production volume was the lowest on record since October 2020.
This is the second month in a row that Chinese IC production has fallen; it was down 16.6% to 27.2 billion units in July. There had been a slight rebound in May and June, the result of lockdowns easing in Shanghai, where many assembly plants are located.
The SCMP writes that the decline can be attributed to new coronavirus outbreaks coupled with China's zero-Covid policy, as well as consumer spending cuts, power shortages caused by local heatwaves, and the global economic downturn. But a significant factor is likely to have been US sanctions.
[...] The Post notes that a record 3,470 companies in China, including those that use the Chinese word for "chip" in their registered names, brands, or operations, went out of business in the first eight months of the year. With the impact of the most recent US restrictions yet to be felt, there's likely more woe in store for the country's tech industry.
(Score: 2) by acid andy on Wednesday October 12 2022, @04:17PM (3 children)
It gets a lot of flak in the western media and a lot of claims of problems with the way it is implemented, but this zero-COVID strategy could turn out to be very forward thinking.
In a decade or so if the disease is still with us in a harmful form, the accumulated organ damage from many reinfections over the years could seriously cripple western workforces. There's already arguably a significant effect and millions diagnosed with Long COVID. I fear that as reinfections continue we may see many people who were previously asymptomatic or only mildly affected start to have worse effects due to accumulated damage that previously wasn't noticed. Imagine the competitive advantage a zero-COVID nation would have in such a scenario. Sometimes it makes a lot of sense to play the long game.
Master of the science of the art of the science of art.
(Score: 0) by Anonymous Coward on Wednesday October 12 2022, @05:17PM (1 child)
Disproportionately affects the elderly so it won't be some long term catastrophe to the workforce. I don't expect there to be any new health issues from people with long COVID beyond what they already experience, nor is there any evidence or expectation of that from the medical community. China should be more concerned about birthrate decline and the need to continue insane (6.25%) GDP growth on a delicately balanced economy that's already showing serious signs of weakness (eg Evergrande, regional bank failures, etc).
So no, I'm not overly concerned. And people give China flak for how they implement their zero-covid policy. They lock people into their homes, literally, by nailing their doors shut. They shutdown whole companies and just leave people inside. Whether or not it will be the most effective long term strategy remains to be seen but there's no doubt that how it is implemented is nothing short of shocking to free, democractic, western societies.
(Score: 0) by Anonymous Coward on Thursday October 13 2022, @12:52AM
It appears that COVID strikes Chinese as well as native Americans and Eskimo (who are likely related) especially hard. Perhaps China knows exactly what she is doing.
(Score: 1) by khallow on Wednesday October 12 2022, @11:27PM
In a decade or so of zero-covid policy, you have a decade or so of crippling of the workforce due to the policy restrictions. I think they'll give up on it eventually.
(Score: 2) by fraxinus-tree on Wednesday October 12 2022, @08:32PM
1. Start decreasing the production of an important commodity as a main market player. Crank the prices up
2. Start a war, get a great deal of sanctions. Mess the market even more
3. ???
4. Profit!