A report from the US House Select Committee on China reveals that Chinese chipmakers purchased $38 billion in advanced chip manufacturing equipment from five major suppliers last year, a 66% increase from 2022. Despite restrictions by the US, Japan, and the Netherlands, inconsistent rules have allowed non-American suppliers to sell products to Chinese firms that US companies are barred from exporting.
The bipartisan committee found that these purchases accounted for nearly 39% of total sales for Applied Materials, Lam Research, KLA, ASML, and Tokyo Electron, warning that this strengthens China’s competitiveness in semiconductor manufacturing. The report recommends a broader ban to replace current company-specific restrictions and tighter controls on components needed for China’s chip equipment production.
The president of TEL America noted that sales in China have begun declining this year but expressed concern over insufficient coordination between the US and Japanese governments. A think tank expert stated, “China is trying to rewrite the entire supply chain—what was once a niche equipment sector is now a battleground.”
ICgoodFind Summary: Escalating export control efforts are reshaping the global semiconductor equipment landscape, underscoring the critical need for supply chain resilience.
