Thanks to US export controls... Sales of Chinese semiconductor equipment companies soar

As the United States tightened semiconductor equipment export restrictions against China, the performance of Chinese semiconductor equipment companies improved significantly. Local equipment companies filled the void left by departing U.S. firms in the Chinese market, gaining a windfall benefit.

On the 2nd, Hong Kong's South China Morning Post (SCMP) reported that ACM Research Shanghai, which produces semiconductor wafer cleaning, electroplating, and packaging equipment, saw its sales nearly double to 2.9 billion yuan last year compared to the previous year. The company's net profit last year surged 254% to 689 million yuan.

Hugui Industry, which sells silicon wafers, recorded sales of 3.6 billion yuan last year, a 46% increase from the previous year. This was due to a surge in orders from Chinese semiconductor companies using legacy processes of 28nm and above.

Beifang Huachang posted sales of 14.7 billion yuan last year, up 51.7% year-on-year, while Zhongwei Semiconductor recorded 4.7 billion yuan, a 52.5% increase.

In October last year, the U.S. banned semiconductor equipment exports to Chinese companies producing ▲ DRAM with processes below 18nm ▲ NAND flash with 128 layers or more ▲ logic chips below 14nm.

In response, Chinese companies reportedly set an implicit goal to source up to 70% of semiconductor equipment domestically. Industry insiders interpret that the U.S. export restrictions have instead become an opportunity to increase the self-sufficiency rate of the Chinese semiconductor industry.

SCMP stated, "While U.S. sanctions against China are disruptive, they provide a rare opportunity for Chinese semiconductor equipment companies to fill the gap left by foreign firms."