Beijing, Apr 14 (IANS): As the US and India bolster local semiconductor manufacturing, China's chip imports nosedived 23 per cent in the first quarter of 2023, the media reported on Friday.

China imported 108.2 billion integrated circuits (IC) between January and March this year, down 22.9 per cent from the same period last year, according to data by the General Administration of Customs, reports the South China Morning Post.

The total value of chip imports dropped 26.7 per cent to $78.5 billion, down from $107.1 billion last year, according to the data.

"China's IC exports fell 13.5 per cent year-on-year to 60.9 billion units in the first three months of 2023, compared with a 4.6 per cent drop a year ago. The total value of the exports dropped 17.6 per cent," the report noted, citing the customs data.

This significant drop reflects how geopolitical tensions and increased US sanctions on China have hampered semiconductor business between the country and the rest of the world.

US President Joe Biden recently enacted into law the Chips and Science Act last year that enables the US to give $53 billion in incentives to attract more chip manufacturing in the country.

Meanwhile, the Indian government approved Rs 76,000 crore ($10 billion to attract investments in the field of semiconductors and display manufacturing.

Vedanta and Foxconn signed a Memorandum of Understanding (MoU) with the Gujarat government last year to invest Rs 1,54,000 crore to set up the semiconductor and display manufacturing plant which is India's first.

India and the US last month inked an agreement for establishing semiconductor supply chain and innovation partnership under the framework of India-US Commercial Dialogue.