Chip import boom highlights need to develop local production

China's imports of integrated circuits passed a record US$300 million last year, but the country still needs a “huge volume” and the demand offers great potential to grow domestic production.

Officials told an industry conference on Thursday the booming automotive, smartphone and smart devices markets will fuel demand through 2022.

Chip imports have been more than US$200 billion a year since 2014 and hit a record US$320 billion last year.

This shows the massive potential for the chip market in China and underscores the need to develop local industry and ecosystem, Ding Wenwu, president of the China National IC Industry Investment Fund, told the annually held Semicon China event, part of the Shanghai International IT & Electronics Fair.

The show is Asia’s biggest information technology fair by space and visitors.

Demand has shifted from consumer to commercial applications, seeking higher return on investment from growing budgets.

Key areas are automotive and the Internet of Things, says US-based analyst Gartner.

The 289,000-square-meter Shanghai International IT & Electronics Fair showcases the latest technologies covering chips, AI and the IoT. It closes on Friday.