[News] China’s Import of Chip Making Equipment Hit New High This Year, with Mature Nodes Driving the Demand

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China has turned itself into “the world’s market” for semiconductor, while it eyes to play a crucial role in chip manufacturing by procuring more equipment. The latest reports by Bloomberg and Technews, citing data from China’s General Administration of Customs, indicates that Chinese imports of chip equipment in the first seven months of 2024 hit a new high, totaling USD 26 billion.

It is worth noting that in July 2024, the Netherlands’ total exports to China exceeded USD 2 billion, reporting the second-highest single-month record ever, the reports say, which can be largely contributed to China’s stockpiling of ASML’s systems and other machinery.

Tightening U.S. Export Restrictions May Lead to China’s Import Surge with Mature Nodes Its Major Focus  

The primary reason behind this surge, according to Bloomberg, may likely be that Chinese tech companies are preparing for further export restrictions on advanced chip manufacturing tools launched by the U.S. and its allies.

The report states that Chinese tech companies are particularly focused on purchasing semiconductor equipment for mature process, from companies like ASML, Applied Materials, and Tokyo Electron. The move allows fabs in China to produce chips needed for local industries, primarily the automotive sector.

Most of the equipment was said to be lithography systems used for mature nodes, which are crucial for Chinese foundries like SMIC. The company is rumored to produce 5nm chips for Huawei this year, by using old deep ultraviolet (DUV) lithography machines purchased from ASML.

New Local Fabs Opening up, Driving China’s Chip Making Equipment Procurement

In addition to counter the possible export restrictions from the U.S., the reports state that China’s aggressive procurement may also be due to the expansion wave of fabs this year. According to SEMI’s projection, among the 42 new fabs expected to go online in 2024, China leads by 18, which further boosts the country’s purchase of semiconductor production equipment.

The momentum also drives demand for local semiconductor equipment manufacturers in China. Chinese semiconductor company Advanced Micro-Fabrication Equipment Inc. (AMEC) reported a strong second quarter, with its revenue up 36.46% year-on-year to RMB 3.448 billion. Its etching equipment revenue reached RMB 2.698 billion, a year-on-year increase of 56.68%.

Read more

• [News] ASML Claims the World Counts on China for Legacy Chips; So Do Chip Equipment Giants
• [News] Samsung and SK hynix’s China Revenue Doubled in 1H24, Reportedly Driven by Semiconductor and HBM Demand

(Photo credit: SMIC)