China invests record $40bn in chipmaking equipments
What's the story
China's imports of chipmaking machines saw a 14% increase in 2023, reaching a staggering $40 billion.
This growth comes as the country's semiconductor industry boosts investments to counter US-led efforts to limit its expansion.
Interestingly, this surge occurred despite a 5.5% decline in overall imports last year, emphasizing the Chinese government and chip industry's focus on self-sufficiency.
Details
Record-breaking import value for chipmaking machinery
According to Bloomberg's calculations based on official customs data since 2015, the $40 billion worth of chipmaking machinery imports in 2023 is the second-largest amount by value on record.
Such big investment showcases China's unwavering determination to overcome challenges posed by US restrictions and solidify its standing in the global semiconductor market.
What Next?
Firms rush to buy ahead of Dutch restrictions
Chinese chip firms are investing heavily in new factories to bypass US restrictions, aiming to enhance national semiconductor capabilities amid export control challenges.
The limits hinder access to crucial chip-making machines, impeding China's high-tech sector development, perceived as a threat by the US.
In December, imports of lithography equipment from the Netherlands soared by almost 1,000% to $1.1 billion as companies hurried to buy ahead of the start of Dutch restrictions this month.
Insights
ASML canceled shipments ahead of Dutch restrictions
Even before those restrictions came into effect, a Dutch company ASML had canceled shipments of some of its top-of-the-line machines to China at the request of the US government, Bloomberg had reported earlier this month.
This happened weeks before export bans on the high-end chipmaking equipment took effect.