Chinese semiconductor companies are scrambling to stock up on semiconductor equipment and materials. This is as the United States, Japan, and the Netherlands are showing moves to strengthen semiconductor export controls to China.
Citing multiple semiconductor industry sources, the Hong Kong South China Morning Post (SCMP) reported on the 25th that large Chinese semiconductor companies are increasing equipment and material stockpiles in preparation for the announcement of an official export control agreement between the US, Japan and the Netherlands.
The United States held negotiations with Japan and the Netherlands at the end of last month in Washington, presided over by White House National Security Advisor Jake Sullivan, and demanded that the United States join the export controls related to semiconductors to China that took effect in October last year. have been told
As a result, Chinese semiconductor companies are struggling to build up stockpiles of equipment and materials.
“A large Beijing-based semiconductor equipment company has filled several large warehouses with materials and components, including those not on the US export control list,” said an anonymous source.
Another source in Tokyo, Japan, in charge of semiconductor equipment and procurement for Chinese customers, pointed out that “some Chinese semiconductor companies are ‘overbuying’ parts and equipment beyond what is required for their production plans.”
The source said that such overordering by Chinese companies was quite unusual and appeared to be attributable in part to concerns that China would expand semiconductor export controls.
Although Japan has yet to officially announce its intention to join the U.S. in controlling exports of semiconductors, the source said Japanese companies are also waiting for clear guidelines on controlling exports of semiconductors to China.
The SCMP, citing sources, expected that in April, new semiconductor export control guidelines targeting cutting-edge semiconductor technology would be announced.
Dylan Patel, senior analyst at Semianalytics, said, “Chinese semiconductor manufacturers and equipment makers have to buy a significant number of spare parts and materials because there is no supply chain in China if (supply chain) is cut off from other countries.” similar to what you did Huawei also stocked up on cutting-edge semiconductors, and it took a considerable amount of time for its business to slow down.”
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.