Chinese chip equipment makers grab market share as US tightens curbs

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As the U.S. tightens its restrictions on China's semiconductor industry, Chinese manufacturers of tools used to make chips are benefiting, with orders from the country's foundries accelerating in recent months.

and etching equipment maker AMEC, are winning a much higher proportion of tenders from Chinese foundries than in previous years, as chipmakers race to replace foreign-made equipment with domestically made alternatives, research showed.

It marks a turning point for the industry, reflecting acceptance that U.S. restrictions on technology imports are unlikely to ease and could get worse and that self-reliance - as urged by Chinese President Xi Jinping - is the way forward.aimed at China's chip industry that seek to stop Beijing from receiving cutting-edge U.S. technologies to strengthen its military. The measures are expected to be updated annually.

Analysts said that Chinese manufacturers were getting better at producing equipment in areas such as etching and cleansing, where they compete globally with the likes of U.S. firms Applied Materials Inc "There is definitely huge progress happening in the Chinese semiconductor equipment space, as reflected in the strong revenue growth metrics," he said.

 

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