China’s semiconductor manufacturer’s imports of foreign lithography equipment has increased by 1050% in November, despite US restrictions. In November, China imported 16 units of lithography systems worth $762.7 million from the Netherlands, with additional units being imported from Japan. This indicates that Chinese firms are not completely cut off from purchasing certain advanced equipment for chip-making. The Netherlands and Japan are the biggest exporters of lithography equipment used to make advanced chips.
The US Commerce Department has abolished the de minimis rule, which applied to certain deep ultraviolet (DUV) equipment, and has now imposed stricter restrictions on the supply of non-latest generation lithography equipment from the Netherlands to China. The spike in imports may be related to rushed shipments made before the restrictions came into place, as the equipment shipped in November received their licenses in 2022 or early 2023. In total, Chinese companies imported 42 lithography systems worth $816.8 million into the country in November.
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