Chipov's War Flies: China accumulates great forces in front of a new blow to the United States

Expecting the White House sanctions, the PRC is in a hurry to buy as much Japanese and Dutch lithographic equipment as possible, and he does not forget about his manufacturers. The sharp growth of sales of equipment for chip production is a sign of future upheavals. It is known that the armed conflicts, countries accumulate ammunition and fuel, and Chinese companies are busy with the expansion of industrial semiconductor facilities, writes The Wall Street Journal.

The fact that the PRC is buying lithographic equipment from European and Japanese manufacturers undoubtedly plays the latter, but also heralds alarming events in the future. Thus, according to the Customs of the PRC, the import of semiconductor equipment to the Celestial 2023 increased by 14% in the annual calculation and amounted to almost $ 40 billion. Chinese chinese manufacturers are in a hurry to buy as much equipment as possible in anticipation of increased US export restrictions.

They try to buy, first of all, lithographic machines for printing schemes on silicon plates. Japan and the Netherlands, key suppliers of such machines, have introduced their own export restrictions on China. According to Chinese customs, in 2023, the import of lithographic "machines" from the Netherlands to China increased almost 4 times compared to the same period last year. Clean sales in the PRC of the Dutch company ASML have tripled in 2023.

China's share last year fell 29% of the total net sales of ASML systems - compared to 14% in 2022. ASML cannot sell its latest lithographic machines in the extreme UV (EUV) for a long time. New restrictions do not allow the company to export some less perfect machines. Last month, the manufacturer stated that the Netherlands government had recalled licenses for exporting some lithographic machines to China.

ASML believes that in 2024 it may lose a proportion of sales in China in the amount of 10% to 15%. China's efforts to produce the most advanced chips are restrained by US sanctions, but local manufacturers are actively promoting their own more mature technologies. For example, the Semiconductor Manufacturing International (SMIC) states that its capital expenditures will be about $ 7. 5 billion this year.

Long -term risk for foreign manufacturers of chip equipment is the desire to give up Western decisions. Although China will take a long time to master some key technologies, such as lithography, there are already niches where Chinese suppliers can replace the western ones. Bernstein estimates that in 2023, suppliers from China occupy about 14% of the domestic market for the production of silicon plates, compared to 3% in 2018. Analysts expect that this share will increase to 29% in 2026.

Leaders include Advanced Micro-Fabrication Equipment Inc. China (Amec) that produces digestive tools and to create schemes on plates. The company has not yet reported results for 2023, but its last public assessment provides for an increase in revenue by 32% in annual calculation. According to the company itself, the sale of its basic dry digestion equipment increased by 49%. Last year, the number of new orders increased by 60%, indicating continuing growth.