China's Chipmaking Equipment Imports Surge Amid U.S. Export Controls

Severity: Medium (Score: 57.0)

Sources: asia.nikkei.com, Kr-Asia

Summary

China's imports of chipmaking equipment from Southeast Asia surged in 2025, surpassing U.S. imports for the first time. Imports from Singapore reached USD 5.7 billion, a 17% increase, while Malaysia saw imports rise to USD 3.4 billion, more than double the previous year. In contrast, direct imports from the U.S. plummeted over 34% to USD 2 billion, the lowest since 2017. This decline is attributed to U.S. export controls and tariffs imposed during both the Trump and Biden administrations. Major U.S. chip equipment manufacturers like Applied Materials and Lam Research are shifting operations to Southeast Asia to cater to non-U.S. clients. The geopolitical tensions have led to a significant decoupling of tech supply chains between the U.S. and China, impacting the global semiconductor market. Despite the decline in U.S. exports, American companies still derive substantial revenue from China, indicating a complex interdependence. The situation reflects ongoing efforts by China to bolster its domestic chip production capabilities amid rising geopolitical uncertainties. Key Points: • China's chipmaking equipment imports from Southeast Asia reached record levels in 2025. • U.S. exports of chipmaking tools to China fell to an eight-year low due to export controls. • Major U.S. chip equipment manufacturers are relocating operations to Southeast Asia.

Key Entities

• China (country)