China's chipmaking tool purchases skyrocket — imports up 256% in the face of intensifying U.S. sanctions

Despite U.S.-led restrictions on wafer fab equipment exports to China, the People's Republic saw a remarkable increase in its imports of lithography systems from the Netherlands in the first two months of 2024. The surge in imports can be traced back to the Netherlands' announcement in June 2023 of restrictions on the export of chip manufacturing equipment. In the first two months of 2024, China's imports of lithography systems from the Netherlands totaled $1.057 billion, a substantial increase compared to the same period last year. In January, 20 systems were imported, worth $666 million, a 522% increase year-on-year. In February, imports were valued at $390 million, up 105.9% year-on-year, with 12 systems brought in. The imports were concentrated in a few key regions within China. The top five providers to ship litho tools were Shanghai, Beijing, Shandong, Sichuan, and Guangdong, which accounted for 78.4% of the total imports.