SINGAPORE/BEIJING - 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.
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. "Now, foundries are testing out Chinese-made equipment for every foreign machine they own and if they find that it meets their needs, they replace all of them," he said. "They want as few foreign machines as feasible."AMEC and Naura in particular were receiving more orders from China's largest foundries SMIC and Hua Hong Semiconductor, he added.
One China-based semiconductor analyst, who declined to be named as he was not allowed to speak to the media, said the quality of Chinese-made chip equipment was improving faster than he had anticipated, estimating that they were two years ahead of his original estimates. China's imports of lithography machines and components used in such machines from the Netherlands rose 81.2% year-over-year to $3.3 billion from January to August, according to Reuters' calculations based on data from China's customs.
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