China's Chip Exports Double To $31 Billion As US Restrictions Fuel AI Demand

China’s AI chip market is growing rapidly, with chip exports doubling last month, amid U.S. export curbs.

China Chip Export Surge

According to an X post by The Kobeissi Letter on Sunday, China's chip exports surged 100% year-over-year to a record $31 billion in April. This has tripled over the past two years. 

Overseas sales of laptops, tablets, and their components spiked 47% from the year-ago month.

Overall, Chinese exports rose 14% year-over-year to $359 billion in April, representing the highest monthly reading on record, per the letter. With this, "Chinese companies were generating ~$500 million in export revenue every hour on average last month," the letter stated.

Goldman Sachs and Nomura estimated that semiconductors, computers, and other AI-related products accounted for half of China’s export growth last month, according to the market commentary.

U.S. Export Curbs, AI Demand Surge

China's leading chipmakers are scaling production of advanced semiconductors amid the U.S. export curbs, along with growing AI demand and supply shortages.

Companies such as Semiconductor Manufacturing International Co. (SMIC), Hua Hong Semiconductor, and many Huawei-linked chipmakers are either expanding or planning to start the production of chips using the most advanced technology available in China. 

According to Paul Triolo of Albright Stonebridge Group, the U.S. restrictions have added “rocket fuel” to demand, while export curbs on Nvidia Corp. (NASDAQ:NVDA) chips are pushing China to adopt local alternatives. This has enabled companies like Huawei and Moore Threads to step in and fill the gap, even as they trail U.S. performance.

China's leading semiconductor firms called in March for a nationwide effort to create a homegrown alternative to ASML Holding N.V. (NASDAQ:ASML), the dominant supplier of extreme ultraviolet (EUV) lithography technology.

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