China starts purchasing almost every chip it finds
As the world's second-largest economy, China seeks to act swiftly against new American sanctions.
China has been rapidly scaling up its imports of semiconductor manufacturing equipment, as evidenced by the recent customs data. In just June and July, their import figures reached a staggering $5 billion, marking a 70% increase when compared to the $2.9 billion from the same timeframe in the previous year. This growth spurt in imports appears to be a pre-emptive move by China, foreseeing the impending export restrictions set to be imposed by the U.S. and its allies. The primary intention behind these restrictions is to curb China's rapid technological advancements. In preparation for this,
Chinese chip manufacturers have been accumulating supplies, predominantly sourced from the Netherlands and Japan, despite both countries having established licensing prerequisites for certain export tools. Although the number of tools affected remains unspecified, the surge implies a strategic plan by China to both augment their production and secure themselves against potential supply chain disruptions.
China starts purchasing almost every chip it finds
Prominent Chinese corporations, including SMIC and YMTC, are predominantly dependent on suppliers from the U.S., the Netherlands, and Japan for their advanced manufacturing equipment. The focus is on amplifying the production of mature chips, especially those that aren't under regulatory controls. These chips find their utility mainly in electric vehicles, renewable energy sources, and various industrial processes.
Notably, there's been a twofold increase in imports from the Netherlands, attributed largely to the shipment of lithography machines to Chinese foundries. Furthermore, the post-2020 U.S. restrictions have prompted an uptick in purchases from Japan, as Chinese companies sought etching tools and wafer coaters. Beijing's push towards enhancing chip production has also received significant support from newly established foundries backed by local governments. Despite the looming export restrictions, China remains steadfast in its mission to continually upgrade its semiconductor prowess. Their recent procurement patterns underscore the nation's relentless drive to attain technological autonomy, leaning into older technologies not currently under restrictive measures.
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