Chinese imports of equipment to make semiconductors hit a record for the first seven months of this year as its companies continue to ramp up purchases in case the US and its allies further block them from buying.
Chinese firms imported almost US$26 billion of chipmaking machinery, fresh trade data released by the Chinese General Administration of Customs this week showed.
That surpassed the previous high mark in 2021 and comes as US, Japanese and Dutch officials work on increasing restrictions on Chinese companies.
Photo: AFP
Chinese purchases from firms such as Tokyo Electron Ltd, ASML Holding NV and Applied Materials Inc have soared in the past year.
During the period, Chinese companies bought more lower-end equipment after the US and its allies tightened controls on their access to the most cutting-edge technology.
That spending spree has helped drive Dutch exports to China to new highs, exceeding US$2 billion last month for only the second time on record.
Dutch company ASML’s sales to China surged 21 percent year-on-year in the second quarter to hit almost half of its total revenue, with sales consisting of unrestricted older systems as Beijing pushes to make more mature types of semiconductors.
ASML is the sole supplier of the most advanced lithography equipment required to make cutting-edge chips. China’s Semiconductor Manufacturing International Corp (中芯) relied on ASML’s older generation of lithography machines to achieve a technological breakthrough last year, Bloomberg News has reported.
Chinese chipmakers are expected to grow their output by 14 percent to 10.1 million wafers per month next year, or nearly a third of the global industry’s production, after achieving a 15 percent increase this year, trade group SEMI estimated in June.
The US has been tightening rules that would restrict China’s progress in critical technologies including semiconductors and artificial intelligence.
Those measures include repeated rounds of export controls limiting the sale of advanced chips and equipment capable of making those components.
Separately, one of China’s most prominent chip gear makers is suing the Pentagon for linking it to the Chinese People’s Liberation Army, seeking to get off a blacklist that bars business with US firms.
Advanced Micro-Fabrication Equipment Inc (中微半導體) alleged that the US defense agency harmed the company’s business and reputation by adding the Shanghai entity to the so-called Section 1260H list of firms linked to China’s military, the company said in its lawsuit.
The Chinese company competes with top US firms including Applied Materials and Lam Research Corp.
In its latest annual report, the Chinese company said some of its machines are now being used to make chips as advanced as 5-nanometers, or technology only one generation behind the most cutting-edge.
Semiconductor shares in China surged yesterday after Reuters reported the US had ordered chipmaking giant Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) to halt shipments of advanced chips to Chinese customers, which investors believe could accelerate Beijing’s self-reliance efforts. TSMC yesterday started to suspend shipments of certain sophisticated chips to some Chinese clients after receiving a letter from the US Department of Commerce imposing export restrictions on those products, Reuters reported on Sunday, citing an unnamed source. The US imposed export restrictions on TSMC’s 7-nanometer or more advanced designs, Reuters reported. Investors figured that would encourage authorities to support China’s industry and bought shares
TECH WAR CONTINUES: The suspension of TSMC AI chips and GPUs would be a heavy blow to China’s chip designers and would affect its competitive edge Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, is reportedly to halt supply of artificial intelligence (AI) chips and graphics processing units (GPUs) made on 7-nanometer or more advanced process technologies from next week in order to comply with US Department of Commerce rules. TSMC has sent e-mails to its Chinese AI customers, informing them about the suspension starting on Monday, Chinese online news outlet Ijiwei.com (愛集微) reported yesterday. The US Department of Commerce has not formally unveiled further semiconductor measures against China yet. “TSMC does not comment on market rumors. TSMC is a law-abiding company and we are
FLEXIBLE: Taiwan can develop its own ground station equipment, and has highly competitive manufacturers and suppliers with diversified production, the MOEA said The Ministry of Economic Affairs (MOEA) yesterday disputed reports that suppliers to US-based Space Exploration Technologies Corp (SpaceX) had been asked to move production out of Taiwan. Reuters had reported on Tuesday last week that Elon Musk-owned SpaceX had asked their manufacturers to produce outside of Taiwan given geopolitical risks and that at least one Taiwanese supplier had been pushed to relocate production to Vietnam. SpaceX’s requests place a renewed focus on the contentious relationship Musk has had with Taiwan, especially after he said last year that Taiwan is an “integral part” of China, sparking sharp criticism from Taiwanese authorities. The ministry said
US President Joe Biden’s administration is racing to complete CHIPS and Science Act agreements with companies such as Intel Corp and Samsung Electronics Co, aiming to shore up one of its signature initiatives before US president-elect Donald Trump enters the White House. The US Department of Commerce has allocated more than 90 percent of the US$39 billion in grants under the act, a landmark law enacted in 2022 designed to rebuild the domestic chip industry. However, the agency has only announced one binding agreement so far. The next two months would prove critical for more than 20 companies still in the process
RSS