Many Chinese companies, led by huawei, have been restricted by U.S. bans, blacklisting and other measures in recent years, unable to buy the required chips or other components from U.S. suppliers, even companies that use U.S. equipment can not ship Huawei. This situation has accelerated China’s plans to strengthen the semiconductor industry, the number of imported chips and semiconductor equipment increased significantly last year.
SMIC and other Chinese companies to expand the purchase of equipment needed to manufacture chips
Chinese companies bought nearly $32 billion of semiconductor equipment from Japan, South Korea, Taiwan and other regions in 2020, making them the biggest buyers that year, up 20 percent from 2019; chip imports climbed 14 percent to nearly $380 billion, or about 18 percent of China’s total imports last year, according to a Bloomberg analysis of official trade data.
In the short term, China will rely on imports to boost its semiconductor manufacturing because it does not yet have the capacity to produce the advanced manufacturing equipment it needs, and while it is investing heavily, success will take more than a decade, said Dan Wang, a technology analyst at Gavekal Dragonomics.
In addition to U.S. restrictions, the new crown Epidemic led to demand for electronic products also promote China’s imports of chips, the Semiconductor Industry Association International (SEMI) last December forecast that global chip sales this year will grow 8.4%, continuing to benefit TSMC, Intel, Samsung Electronics and other companies; the purchase of equipment will help Tokyo Powertech (Tokyo Electron), Aisi Mohr (ASML ) sales.
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