Global Chip Equipment Makers’ China Revenue Share Doubles Post Export Controls

Bank of America analysts report that since the U.S. imposed tighter export controls in October 2022, the China revenue share for major semiconductor equipment manufacturers, including $ASML Holding (ASML.US)$ , more than doubled from 17% to 41% by Q1 2024. The companies analyzed include $Lam Research (LRCX.US)$ , $ASML Holding (ASML.US)$ , $KLA Corp (KLAC.US)$ ., and $Applied Materials (AMAT.US)$. This surge is attributed to China accelerating its purchases to enhance its semiconductor manufacturing capabilities.

The report highlights that tech, especially semiconductors, is central to U.S.-China trade tensions, which could escalate further. The Biden administration is considering broader restrictions on semiconductor equipment exports to China, potentially affecting non-U.S. companies. Meanwhile, Beijing is intensifying efforts to achieve tech self-sufficiency, reaffirmed by top leaders at a recent policy meeting.