A worker produces chips at a semiconductor manufacturing facility in Binzhou, China, on June 4, 2024.
Noor Photo | Noor Photo | Getty Images
BEIJING – Four of the world's largest semiconductor equipment makers, including ASMLMajor fintech companies like Huawei and Google have seen their share of revenue in China more than double since late 2022, analysts at Bank of America said in a report released Monday.
“China has accelerated purchases of semi-industrial manufacturing equipment since the United States imposed tighter export restrictions in October 2022, aiming to develop its semi-industrial manufacturing capacity,” the report said.
Bank of America's analysis looked at Lam ResearchASML, KLA Company And Application materials.
The research found that corporate revenue in China more than doubled from 17% of total revenue in Q4 2022 to 41% in Q1 2024.
“The technology sector, especially the semi-industrial sector, is at the centre of trade tensions with China, which could be more vulnerable if tensions escalate further from here,” the report said.
The United States began imposing sweeping export controls on U.S. sales of advanced semiconductors and related manufacturing equipment to China in October 2022. Last week, Bloomberg reported, citing sources, that the Biden administration is considering broader restrictions on semiconductor equipment exports to China that could impact non-U.S. companies.
At the same time, Beijing has sought to boost self-sufficiency in technology, a goal that top leaders emphasized at a key political meeting last week.
VanEck Semiconductor ETF (Trait)Apple Inc., which tracks U.S.-listed chip companies, has fallen in the past week but is still up about 46% year-to-date.
