Major global chip equipment makers' China revenue share has doubled since U.S. imposed export controls

BEIJING — Four of the world's largest semiconductor instrumentality manufacturers, including ASML, person seen the stock of their China gross much than treble since precocious 2022, Bank of America analysts said successful a study Monday.

"China accelerated its acquisition of semi manufacturing instrumentality since the U.S. imposed tighter export restrictions successful October 2022, aiming to make its ain semi manufacturing capability," the study said.

The BofA investigation looked astatine Lam Research, ASML, KLA Corp. and Applied Materials.

The probe recovered the companies' China gross much than doubled from 17% of their full gross successful the 4th fourth of 2022 to 41% successful the archetypal 4th of 2024.

"Tech, particularly semi, is astatine the halfway signifier of commercialized tensions with China, which could beryllium much astatine hazard if tensions further escalate from here," the study said.

The U.S. successful October 2022 started imposing sweeping export controls connected U.S. income of precocious semiconductors and related manufacturing instrumentality to China. Last week, Bloomberg reported, citing sources, that the Biden medication was considering broader restrictions connected semiconductor instrumentality exports to China that could impact non-U.S. companies.

Beijing, meanwhile, has sought to bolster its tech self-sufficiency, a extremity apical leaders reaffirmed astatine a cardinal argumentation gathering past week.

The VanEck Semiconductor ETF (SMH), which tracks U.S.-listed spot companies, has fallen successful the past week but is inactive holding gains of astir 46% for the twelvemonth truthful far.