In the first half of 2024, the country spent a record $25 billion on equipment for chip production, exceeding the combined similar costs of the United States, South Korea and Taiwan.
Major chipmaking equipment suppliers like Tokyo Electron, ASML, and others generate a significant portion of their revenue from sales in China, with 49.9% of Tokyo Electron’s revenue in June 2024 coming from Beijing, for example.
The purchases could be part of China’s strategy to stockpile critical equipment ahead of a possible tightening of sanctions following the U.S. presidential election in November.
In parallel, the country is threatening Japan with economic sanctions in response to possible restrictions on equipment supplies and vowing to reduce supplies of rare earth metals critical to car production.
Source: Ferra
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