China's chip exports are booming but may be nearing overcapacity, stoking fears of chip glut — SMIC revenues rise as profits fall

SMIC.

China's semiconductor exports are growing, but today's success might not be the clear victory that state media makes it out to be. Industry analysts believe that China's chip sector may be reaching overcapacity and that supply will dwarf demand in the coming months. That could mean we see predictions of a price war and a chip glut spurred by China's overproduction of domestically produced mature node process nodes come to fruition. 

DigiTimes Asia reports on the General Administration of Customs of China's recent reports on semiconductor imports and exports, highlighting growth in both segments. In May alone, China imported $30 billion worth of integrated circuits, adding to a total of 213 billion units imported since January 2024. These units are worth an estimated $148 billion, marking a 14.9% year-over-year increase in the country's chip imports.