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China’s chip equipment makers struggle to profit at home from US export controls

Orders rise in short term, but domestic suppliers lag in supporting advanced semiconductor technology

As US export controls bite, Chinese manufacturers of equipment needed to make semiconductors are expected to benefit from a rush of domestic orders, though executives and analysts warn the boost could be shortlived.

Since Washington introduced sweeping restrictions on October 7 to limit Chinese companies’ ability to obtain or manufacture advanced computer chips, Yangtze Memory Technology, China’s largest memory chip maker, has issued at least 20 tenders for a broad range of chipmaking equipment.

“The current strategy is that if there is workable domestic semiconductor production equipment, even though [the suppliers] need help, we will buy from Chinese companies. If not, we shop from non-US vendors, mostly Japanese,” said a senior YMTC engineer.

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