On June 4, 2024, a worker was producing wafers at a semiconductor manufacturing company in Binzhou, China.
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Beijing—the world’s four largest semiconductor equipment manufacturers, including ASMLThe companies have more than doubled their revenue share in China since the end of 2022, Bank of America analysts said in a report on Monday.
The report states: “Since the United States implemented stricter export restrictions in October 2022, China has accelerated the purchase of semi-finished product manufacturing equipment, aiming to develop its own semi-finished product manufacturing capabilities.”
Bank of America's analysis looks at Pan-forest researchASML, KLA Corporation and Applied Materials.
The study found that these companies' revenue in China more than doubled, from 17% of total revenue in the fourth quarter of 2022 to 41% in the first quarter of 2024.
“Technology, especially semi-finished products, is at the center of trade tensions with China and could be at greater risk if tensions escalate further,” the report said.
The United States will begin to implement comprehensive export controls on advanced semiconductors and related manufacturing equipment sold by the United States to China in October 2022. Last week, Bloomberg reported, citing sources: The Biden administration is considering broader restrictions on exports of semiconductor equipment to China that could affect non-U.S. companies.
Beijing, meanwhile, has been seeking to bolster its technological self-sufficiency, a goal reiterated by top leaders at a key policy meeting last week.
VanEck Semiconductor ETF (SMH)Companies tracking U.S.-listed chip companies fell last week but are still up nearly 46% so far this year.