China has increased its imports of semiconductor component manufacturing equipment to a record level ahead of the entry into force of export restrictions by Japan and the Netherlands, the Financial Times reports.
According to the General Administration of Customs of the People’s Republic of China, the volume of imports of equipment for the production of chips in June and July amounted to about $ 5 billion, which is 70% higher than the figure for the same period last year ($ 2.9 billion).
China purchased the bulk of the equipment from the Netherlands and Japan. These two countries announced in January of this year that they would join the U.S. export restrictions on China’s semiconductor equipment.
In Japan, these restrictions will come into effect on July 23, and in the Netherlands – on September 1. Once they come into effect, buyers of equipment will have to obtain special licenses from the governments of these countries.
As the FT notes, the increased imports of chip-making equipment shows that China wants to avoid any disruption to its plans to expand semiconductor production.
“This is one of China’s responses to export restrictions imposed by the Netherlands and Japan,” notes Lucy Chen, vice president at Taiwanese analyst firm Isaiah Research. – Beijing is stockpiling equipment in advance to negate potential supply chain problems.”
China’s imports of Dutch chip-making equipment doubled in June and July compared with May due to increased shipments by ASML Holding NV, FT industry sources said.
ASML chief executive Peter Wennink said on an investor conference call last month that there was strong demand for equipment designed to produce non-advanced chips from Chinese buyers.
Imports from Japan also rose. In addition, there has been an increase in shipments to China of chip-making equipment from Singapore and Taiwan, the FT notes.
CHINA, IMPORT, PRODUCTION, ЧИП
