Skirting U.S. Export Controls, China Stockpiles U.S. Semiconductor Toolmaking Equipment

New Financial Reports Reflect Huge Profits from Selling to Chinese Chipmakers with Connections to the Chinese Military The White House’s June 2021 supply chains report noted that the People’s Republic of China (PRC) relies on the U.S. and a couple of other companies/countries to purchase the tools that allow them to manufacture their own microchips. More specifically, three U.S. companies lead the global toolmaking industry: Lam Research, KLA, and Applied Materials. According to White House calculations, the semiconductor equipment manufacturing industry is dominated by the US (42 percent market share), Japan (31 precent) and the Netherlands (19 percent), concluding that “although there is a Chinese company producing every category of semiconductor manufacturing equipment, Chinese companies “do not have a notable… Read More