The production volume of China’s semiconductor saw a steep decline in October amid weak demand.

According to data released by China’s National Bureau of Statistics (NBS) on Monday, China’s semiconductor output last month down 26.7 percent year-on-year to 22.5 billion units, marking the biggest monthly decline on record for the domestic semiconductor industry

China’s integrated circuit (IC) output continued downward trend starting in April, when Covid-19 lockdowns affected manufacturing activities in Shanghai and other mainland production hubs. In August, production of ICs also saw a 24.7 percent slump.

China’s total IC output for the first 10 months of 2022 reached 267.5 billion units, down 12.3 per cent from the same period last year, NBS data showed.

The fall in monthly semiconductor production coincide with the declining factory activities across the country amid weak demand, as the official manufacturing purchasing managers’ index fell to 49.2 in October, from 50.1 in September.

Zhao Haijun, co-chief executive of China’s top chip maker Semiconductor Manufacturing International Corp (SMIC), warned that weaker demand for consumer electronics products is expected to affect its business outlook through the first half of 2023.

According to Canalys’s latest report, smartphone shipment in mainland China stood at 70 million units for third quarter of this year , down 11 percent compared to the same period last year.