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With the U.S. tightening chip export controls, China is reportedly exploring a more drastic solution. According to Korean media outlet etnews, the Chinese government is pushing to consolidate the country’s semiconductor equipment companies into about 10 key players.
The report suggests that due to tough U.S. sanctions, the Chinese government is pushing to restructure its semiconductor equipment sector. As many of these firms rely on government subsidies, Beijing now aims to shrink its more than 200 chipmaking equipment companies into just 10 key players, as per etnews.
Citing data from Korea Institute for International Economic Policy, etnews notes that over the past decade, the Chinese government has poured roughly 1.33 trillion yuan (about 259 trillion KRW) into boosting semiconductor self-sufficiency.
However, the results seem to be limited so far, as China’s semiconductor self-sufficiency stands at just 23%, the report adds.
The consolidation could already be in the works. In March, China’s Naura Technology, specializing in sectors like etching, thin-film deposition, and cleaning/epitaxy, announced plans to acquire a 9.5% stake in local photolithography coating equipment maker Kingsemi for RMB 1.69 billion (USD 232.8 billion), according to ijiwei.
In a market dominated by global chip giants, Naura reportedly ranks among the world’s top ten semiconductor equipment makers, trailing only ASML, Applied Materials, Lam Research, Tokyo Electron, and KLA, according to the Economic Daily News.
Industry sources told etnews that, driven by government policies, China’s top equipment makers will ramp up efforts to grow through bold mergers and acquisitions (M&A) to boost their capabilities.
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(Photo credit: Naura Technology)
