The Biden administration has unveiled the largest and most extensive list of chip sanctions against China to date, primarily targeting Chinese semiconductor equipment and materials manufacturers. However, the anticipated impact on the industry appears less severe than previously estimated due to Chinese enterprises focusing on localization for the past four to five years.
The sanctions encompass a wide range of companies, including major Chinese semiconductor equipment manufacturers involved in critical areas such as tracking, etching, thin film deposition, cleaning, photoresist removal, ion implantation, chemical mechanical polishing (CMP), and packaging testing.
Key domestic semiconductor equipment manufacturers like Naura, Piotech, ACM Research, CEIC, Kingstone Semiconductor, SiCarrier, AccoTest, Hwatsing, and Kingsemi are among those affected. Many publicly traded companies have responded that the impact of the sanctions would be minimal.
Naura stated that it has focused on building a self-sufficient supply chain in recent years, with approximately 90% of its revenue coming from the Chinese market and less than 10% from overseas, resulting in minimal effects from the sanctions.
Hwatsing reported no substantial impacts at this time, noting that most core components have already achieved self-sufficiency.
A Piotech insider stated that the company expects only minor operational impacts, as its primary sales region is China, and it has multiple sources for key components and materials to ensure supply chain stability.
Kingsemi stated that it is still assessing the long-term implications but has localized solutions for core components, with a small proportion of foreign clients.
An insider from AccoTest noted that while they previously relied on American suppliers, after localizing their supply chain, external sources are now optional. The US export control regulations do not affect their business operations.
Skyverse revealed that it had proactively implemented countermeasures about four to five years ago, focusing on both component production and sales. All key components are now produced in-house, targeting the domestic market, which is expected to mitigate any significant impact on the company.
