A worker produces chips at a semiconductor manufacturing company in Binzhou, China, on June 4, 2024.
Nurfoto | Nurfoto | Getty Images
BEIJING — Four of the world’s largest semiconductor equipment manufacturers, including ASMLhave seen the share of their Chinese revenues more than double since the end of 2022, Bank of America analysts said in a report on Monday.
“China accelerated the purchase of semi-manufacturing equipment since the US imposed stricter export restrictions in October 2022, with the aim of developing its own semi-manufacturing capacity,” the report said.
The BofA analysis was looked at Lam ResearchASML, KLA Corp. And Applied materials.
The study found that the companies’ Chinese sales more than doubled, from 17% of their total sales in the fourth quarter of 2022 to 41% in the first quarter of 2024.
“Technology, especially the semi-sectoral sector, is at the center of trade tensions with China, which could be at greater risk if tensions escalate further from here,” the report said.
The US began imposing sweeping export controls on US sales of advanced semiconductors and related manufacturing equipment to China in October 2022. Last week Bloomberg reported, citing sources: that the Biden administration was considering broader restrictions on semiconductor equipment exports to China that could impact non-U.S. companies.
Beijing, meanwhile, has sought to strengthen its technological self-sufficiency, a goal that top leaders reaffirmed at a key policy meeting last week.
The VanEck Semiconductor ETF (SMH)which tracks U.S. publicly traded chip companies, has fallen over the past week but is still posting gains of nearly 46% for the year so far.