Sales of import substituted chip production machines have surged in China

Sales of import-substituted chip production machines have surged in China amid new sanctions from the United States and its allies

The Chinese industry needs import substitution at the level of equipment for the production of semiconductor components, as sanctions from the USA, Japan and the Netherlands begin to restrict the supply of even not the most advanced imported equipment to the country. Against this background, sales from Chinese suppliers increased by 39% in the last half of the year compared to the same period last year.



According to CINNO Research, quoted by the source CNBCIn the first half of this year, China’s 10 largest semiconductor equipment makers collectively generated sales of about $2.2 billion, up 39% year-on-year. US sanctions against Chinese chipmakers have been tightened since October last year; Earlier this year they were joined by Japan and the Netherlands, which could remain channels for reserve supplies of equipment to China. Under such conditions, Chinese chipmakers had to more actively purchase domestic equipment when appropriate in terms of transforming technological processes.

The authors of the study consider Naura Technology to be the largest Chinese manufacturer of chip production equipment in terms of sales. In the first half of the year, the company reported revenue of nearly $1 billion, up 68% from the same period last year. The second-largest Chinese chip equipment maker in monetary terms is AMEC, whose first-half revenue rose 28% to $350 million.

The third largest domestic market player in China is ACM Research, which makes equipment for cleaning silicon wafers and packaging chips; its revenue rose 47% to $220 million in the first half of the year. As is known, the recent scandal with the appearance of Huawei Mate 60 smartphones The Chinese-developed HiSilicon processor released with 7nm technology has caused great concern among American officials, so sanctions against China in the technology sector may be tightened . This means that Chinese equipment suppliers must become the main hope and support of the domestic semiconductor industry.

About the author

Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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