Major Chinese semiconductor equipment manufacturers have reported significantly high revenue and profit, according to their latest financial disclosures, as they filled the void left by American suppliers who suspended local operations to comply with US trade restrictions on the mainland.
ACM Research (Shanghai) – a cleaning, electroplating and packaging equipment maker that is the Chinese subsidiary of US firm ACM Research – made 2.9 billion yuan (US$419 million) in total revenue last year, a significant rise from 1.6 billion yuan in 2021, on the back of increased domestic demand. Net profit reached 689 million yuan, up 254 per cent from a year ago, according to its annual report published in February.
State-backed National Silicon Industry Group, which sells silicon wafers to chip foundries, saw its revenue climb 46 per cent to 3.6 billion yuan in 2022, on robust demand from China’s integrated circuit manufacturers using mature semiconductor process nodes of 28-nanometre and above, according to its annual report.
“The US sanctions have advanced China’s ambitions in semiconductor technology and helped boost revenue growth for Chinese equipment makers,” said Sravan Kundojjala, senior semiconductor industry analyst at TechInsights.
Naura Technology Group also credited high local demand for its 14.7 billion yuan revenue in 2022, up 51.7 per cent from the previous year. Another chip tool maker, Advanced Micro-Fabrication Equipment, reported 4.7 billion yuan in revenue last year, a 52.5 per cent jump from 2021, as net profit rose 15.6 per cent to 1.2 billion yuan, according to its annual report published in March.