China’s ‘basic self-sufficiency’ in chip-making tools could come this summer, veteran says

The US has been increasing pressure on China’s chip sector since October 2022, when it barred for the first time exports of equipment to all Chinese foundries that make advanced logic and memory chips. The export control rules were further fortified last October, barring ASML from selling some of its less advanced ultraviolet lithography systems to Chinese customers.

The restrictions have forced Chinese suppliers to join together to find breakthroughs that can counter some of these restrictions. They also provided an opening in the market for China’s domestic tool makers, according to Zhang Guoming, general manager of Hwatsing Technology, which makes chemical mechanical planarisation equipment.

AMEC’s Yin said 60 per cent of parts used in his company’s etching tools are procured domestically, while 80 per cent of components used in its metal organic chemical vapour deposition tools are locally sourced. However, China still has a long way to go to replace all imported tools.

“In the chip tool sector, China still has a large distance from global top players,” Yin said. Locally made tools account for an estimated 15 to 30 per cent of those at domestic foundries. Lithography systems, ion implantation tools and electron beam inspection systems are the weakest areas for Chinese firms, according to Yin.