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The adoption rate of domestically produced analog chips for home appliances in the country is already quite high, according to several distributors, analysts, and industry experts following an anti-dumping investigation launched into imported chips from the U.S.
Approximately 90% of analog chips, such as operational amplifiers, comparators, and power supply components used in the home appliance sector, are manufactured locally. When considering digital chips and power semiconductors, this figure ranges between 70% and 80%, explained Chen Jianmin, the founding director of the reliability research institute at Xi’an University of Technology.
On September 13, the Ministry of Commerce initiated an inquiry to determine whether American suppliers have been selling analog chips at unfairly low prices in the local market, potentially harming domestic manufacturers. If evidence of dumping is found, tariffs may be imposed on the affected imports. These chips are commonly found in devices like microphones, laptops, and smartphones.
Chinese-made analog chips already meet the performance standards required by typical home appliances, with leading manufacturers prepared to switch to these domestic components if necessary, a chip distributor noted. For instance, in variable frequency drives used in large appliances such as air conditioners, refrigerators, and washing machines, local products account for at least 60% of the chips used, with 100% adoption in smaller appliances.
While a few imported operational amplifiers and power supply chips are still in use, domestic chips tend to be more affordable, though industry insiders acknowledge that local producers need to enhance their technological capabilities.
Industry experts believe the domestic chip market is sufficient to meet the needs of home appliance manufacturers, although there is still progress to be made in product reliability. As the industry moves toward higher-end products, a new phase of competition is expected, with only the strongest companies thriving, they added.
The anti-dumping review is anticipated to speed up the industry’s shift toward greater localization of chip components used in home appliances, according to Xu Hong, a senior advisor at the China Household Electric Appliance Research Institute.
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