Global AI Boom Drives China’s Chip Exports to Nearly Double in First Half of Year

China’s integrated circuit (IC) exports nearly doubled in the first half of 2024, according to customs data released Tuesday by the General Administration of Customs. The country exported 179.44 billion chips worth US$177.28 billion between January and June—a year-on-year increase of more than 96%. The surge underscores how the global artificial intelligence boom is fueling demand for computing hardware, reinforcing semiconductors as a key engine of China’s export growth.

Hi-Tech Exports Drive Overall Trade Growth

The sharp rise in chip exports helped propel China’s double-digit overall export growth in the first six months of the year, alongside strong overseas demand for industrial robots and other advanced technology products. “The export growth was fundamentally driven by precisely matching ‘Made in China’ products with diverse global demand,” Wang Jun, a vice-minister of customs, said at a press briefing on Tuesday. The data reflects a broader shift toward technology-led exports, even as China faces mounting trade restrictions and geopolitical challenges.

Computing Hardware Exports Jump as AI Applications Expand

Exports of automatic data processing machines and parts—including computers, servers, memory modules, and other computing components—rose 41.3% to US$138.08 billion in the first half of the year. Emerging AI technologies and their applications have become one of the biggest drivers of trade growth, with companies worldwide racing to secure the hardware needed to train and deploy advanced models. The trend highlights China’s dual strategy of promoting domestically designed chips while also approving sales of certain foreign AI processors, such as Nvidia’s H200 graphics processing units, to a select group of Chinese tech firms.

The source for this article is https://www.scmp.com/tech/article/3360503/global-ai-boom-sees-chinas-chip-exports-nearly-double-first-half-year.