New Delhi, Sep 18 (TIWN) As India and the US double down on domestic semiconductor manufacturing, China witnessed its biggest-ever monthly decline in chip manufacturing in August owing to Covid restrictions and weakening demand.

According to the South China Morning Post, the production of integrated circuits (ICs) slumped 24.7 per cent year on year to 24.7 billion units, marking the largest single-month decrease since 1997.

In August, domestic manufacturing activity contracted for the first time in three months, the report mentioned.

A record 3,470 chip-making companies "went out of business in the first eight months of the year", according to statistics from business database platform Qichacha.

The slump in chip production in China is coming as both India and the US ramp up efforts to bolster local chip manufacturing.

The Gujarat government has partnered Vedanta and Foxconn, aiming an investment of Rs 1.54 lakh crore to achieve self-reliance in the field of semiconductor manufacturing.