China Ramps Up Semiconductor Imports Ahead of Export Restrictions

[AleksandarK]

China has sharply increased imports of semiconductor manufacturing equipment in recent months, customs data reveals. The country's purchases of chip production tools surged to record highs of nearly $5 billion in June and July, a 70% increase versus the same period last year, which amounted to $2.9 billion. The spike comes right before export restrictions on advanced chipmaking equipment are implemented by the U.S. and its allies. The moves aim to slow China's technological advancement, but Chinese chipmakers are stockpiling to avoid disruptions. Much of the equipment comes from the Netherlands and Japan, which have imposed licensing requirements on certain tool exports. While it's unclear how many are affected, the rush suggests China wants to expand production capacity and buffer against supply chain issues.

Chinese firms like SMIC and YMTC rely heavily on U.S., Dutch, and Japanese suppliers for cutting-edge manufacturing equipment. They are utilizing imported tools to boost the output of mature chips not subject to controls, particularly for electric vehicles, renewable energy, and industrial applications. Significantly, imports from the Netherlands doubled as lithography machines were delivered to Chinese foundries. Purchases from Japan also rose as companies procured etching tools and wafer coaters after 2020 U.S. restrictions. Newly established foundries backed by local governments contributed as Beijing pushed chip production expansions. Despite export control challenges, China aims to keep advancing its semiconductor capabilities. The import spike highlights intensified efforts to build self-sufficiency using older technology not covered by current limits.



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[FreedomEclipse]

Makes sense... Since they are now supplying Russia in their special operation.

 

[WorringlyIndifferent]

These export controls will backfire spectacularly, and it won't be a temporary change. There are tons of factors at play, but export controls will be the driving force that transitions the world's center for technological development from the US to China. To be clear: these restrictions are not slowing China down, they are lighting a fire under China's ass. And unlike in the west, China's government is actually working with the intent of increasing their country's capabilities and power, instead of trying to break it down and turn it into a shoddy little banana republic. And don't misinterpret this, I absolutely would not want to live in China, but the fact that China's government (and therefore their industries) are working in the interest of making China stronger, whereas the US' (and essentially every western government's, along with the banks and industry) are working in the interest of making our nations weaker, is completely undeniable.

And just think about this logically for two seconds: why on earth would you give your opponents a heads up of "hey by the way we're completely cutting you off from our supplies, so be sure to stock up now"? It's because there was no strategy. This was incompetence, dramatic incompetence, from the beginning and from the top down.

 

[Pooch]

Are there supposed to be bends in the wafer plate? And that persons hands look like bags of diarrhea.

 

[R0H1T]

The west had the demographic and cultural advantage for making advancements

China doesn't have any demographic advantage, not anymore. But depending on their actions & relations with the neighbors the power shift could be more favorable towards the PRC, or not!

It's because there was no strategy. This was incompetence, dramatic incompetence, from the beginning and from the top down.

It was posturing more than anything else, just like Russia in fact, but when it came to China "the West" realized how much profits they currently make! Take China out & you have the world's biggest publicly listed company probably losing 70-80% of its production & maybe 30-40% of its profits. So yes it isn't just about shutting China down because they simply can't unless they're willing to take massive effin losses & this goes for China as well

 

[ARF]

And don't misinterpret this, I absolutely would not want to live in China

China is extremely developed. It has high-speed trains, while the railway infrastructure in the US gets 0 funding and capital investment, so it breaks to pieces. Actually, the statistics shows that in the US they get as many as three or four train accidents daily.
So which is the one that pretends for global dominance and which one is a "third-world" country?

 

[freeagent]

So which is the one that pretends for global dominance and which one is a "third-world" country?

The one with the biggest guns, still.

 

[95Viper]

Stop regional/political jabs/vitriol and keep to the topic.

 

[kondamin]

it would be nice if that ended up in China going their own way

 

[ARF]

it would be nice if that ended up in China going their own way

What? China is the current technological global leader in almost all sectors - medicine, semiconductors, sciences, education, etc. What should happen is that the other countries must follow the Chinese expertise and learn how to live.

 

[kondamin]

What? China is the current technological global leader in almost all sectors - medicine, semiconductors, sciences, education, etc. What should happen is that the other countries must follow the Chinese expertise and learn how to live.

First time hearing that.

but what I mean is that it’s not bad if there is a split in where blocks choose to develop towards.

 

[the54thvoid]

Politics and technology are becoming inseparable.

I'll call you out on that.

Politicians want you to think they are inseperable. For example, at present, many western Universities work with Chinese Universities. Science is a global effort. Where things breakdown is the capitalisation and profiteering from said technology. Also, the use of technology in the military sphere.

However, why we do what we do on TPU is not because we think we can separate tech from politics - it's because there is a significant number of people who cannot discuss the issues without resorting to (often insane) polarised viewpoints. Worse, as is ever-increaszing with modern politics, people just lie. Or they obfuscate. Or they find a martyr, or a scapegoat. We don't allow politics on TPU because most people aren't interested, and those that are, are often sitting with their pants down in one camp, shitting on other peoples opinion, or worse, thread-crapping with vitriol or pseudo-patriotic bullshit.

That's why we moderate politics. Because, unfortunately, in the main, people are shit at neutrality.

So there you go.

 

[Jozsef Dornyei]

China has spent a huge amount of time and money to catch up with EU semiconductor manufacturing technology. Than China has given up and imported the devices instead.
China has the resources to try again and catch up or at least able to service the exiting technology they have.
The outcome will be that China will be able to manufacture its own semiconductor manufacturing equipment and does not depend on EU imports any more.

China has access to Russia semiconductor manufacturing too. Russia has her own technology what is not as good as EU technology but does work.