Business Maverick: China buys fewer chip-making machines as US restrictions start

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Purchases of the machines to make computer chips fell 27% last month from a year earlier as the US imposed new, sweeping sanctions to try and derail China’s chip ambitions.

Chinese firms imported $2.4-billion worth of machinery used in semiconductor manufacturing last month, the lowest amount in more than two years after Washington broadened restrictions on the sale of the gear to the world’s No 2 economy.

It’s unclear exactly how much imports were impacted by the sanctions, which were announced early in the month, but October was significantly weaker by value than any other month this year. Chinese purchases from overseas suppliers have fallen in seven of the 10 months for which data has been reported so far in 2022.

Purchases from major exporters such as Japan and the US were down in October, according to Bloomberg analysis of official trade data released on Monday. Shipments from the Netherlands doubled in the month. That is where ASML Holding NV, the leading producer of chip-making equipment, is headquartered.

In the past few years, Chinese firms have been rapidly buying more of this equipment as the country seeks to develop its domestic semiconductor industry to be independent of the US. The new US restrictions only apply to US firms at the moment, and while President Joe Biden’s administration is negotiating with Japan and the

 

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Weird . You will think they can make their own. And its strange that Japan and USA makes chip making machines and NOT produce the chips themselves

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