Chinese firms purchased chipmaking tools worth $26 billion amid U.S. ban

A new report states Chinese firms have purchased $26 billion worth of chipmaking tools this year. This is a new record that might give a shock to the U.S. authorities. Despite several restrictions, China shows that it can stand alone all challenges.

China’s General Administration of Customs released a new report this week. It says that the native region has broken all the records in the past three years (2021). Chinese companies have imported chipmaking tools worth $26 billion this year.

The report reveals that China is stocking up chipmaking machinery in advance. It’s eventually a backup in case the U.S. authorities impose further restrictions on Chinese firms for buying high-end technologies to develop powerful chipsets.

Also, the ultimate move has arrived when the American, Japanese, as well as Dutch governments are looking to push off more limitations on the Chinese firms.

Inputs reveal that the Chinese companies bought chipmaking equipment from Tokyo Electron Ltd., ASML Holding NV, and Applied Materials Inc. last year.

During the gap of seven to eight months, these companies also purchased inferior equipment due to increased trade export controls. Notably, a high importing from the Dutch (ASML) helped the country to increase its sales by $2 billion in July 2024.

ASML Tools

ASML chipmaking tools shipment to China reached 21% in Q2 2024. For now, ASML is the only supplier of advanced chipmaking machines like lithography equipment. Chinese companies have purchased most of the tools from ASML. These firms aim to make more efficient processors using old and unrepaired systems.

The latest report implies that China has achieved 15% wafer production per month this year. With constant efforts, the Chinese firms could meet the goal of 10.1 million wafers per month by 2025. Perhaps U.S. challenges won’t stop China from pacing ahead.

[Source]