From CNBC: 2024-07-23 22:40:29

Chinese semiconductor manufacturers have dramatically increased their purchasing of equipment from four of the world’s largest semiconductor equipment manufacturers since late 2022, according to Bank of America analysts. China’s goal is to develop its own semiconductor manufacturing capability due to U.S. export restrictions.

The BofA analysis focused on Lam Research, ASML, KLA Corp., and Applied Materials, finding that their China revenue more than doubled from 17% to 41% of total revenue between the fourth quarter of 2022 and the first quarter of 2024. This highlights the increasing importance of the tech sector in trade tensions with China.

In response to U.S. export controls on advanced semiconductors and manufacturing equipment, China has been ramping up efforts to enhance its tech self-sufficiency. Last week, the Biden administration was reportedly considering broader restrictions on semiconductor equipment exports to China, potentially impacting non-U.S. companies.

Amidst escalating trade tensions and geopolitical concerns, the VanEck Semiconductor ETF has experienced fluctuations in the market. Despite recent dips, the ETF is still showing gains of nearly 46% for the year so far, reflecting the volatility and impact of global events on the semiconductor industry.

Read more: Global chip equipment makers double China revenue share since U.S. controls