At this week's Semicon China, one of the premier semiconductor events in the country, the participation of US chip equipment firms is noticeably sparse among the 1,100 exhibitors, amidst ongoing tensions in the China-US technology dispute.
Even though Lam Research and Applied Materials, two leading US chip tool firms, are sponsors of Semicon China for the second year in a row, they lack a physical booth at the Shanghai expo which commenced on Wednesday.
KLA, an important American company providing semiconductor defect inspection and metrology solutions, stands out as the sole major US tool enterprise participating as both an exhibitor and a sponsor at the exhibition.
Micron, an American semiconductor giant impacted by Chinese trade sanctions, is also sponsoring the event, although it doesn't have a booth to showcase its most recent offerings.
In the context of escalating geopolitical tensions and strict US export controls, which prevent China from acquiring advanced chips like Nvidia's H100 and A100 graphics processing units, the country is nonetheless advancing in increasing its production of more conventional chips used in automobiles and home appliances to meet local needs.
At Semicon China, held in March 2024, Naura Technology’s booth was featured, demonstrating the event's attractiveness and relevance in the semiconductor sector.
A sales manager from Unicorn, a Shanghai distributor for KLA systems, suggested that many American tool companies prefer a subdued approach to avoid attracting scrutiny from Washington. This individual preferred to remain anonymous as they were not cleared to speak to the media.
Despite the reduced presence of US firms, the event has successfully attracted numerous Japanese companies, such as Tokyo Electron and Canon Optical Industrial Equipment, which are crucial to Chinese semiconductor manufacturing processes.
ASML, a Dutch company specializing in lithographic systems, faced with growing pressure from the US to cut off supplies to Chinese clients, did not participate in this year's event. Cymer, an American firm that supplies light sources to ASML, and was an exhibitor last year, was also missing, reflecting the changing dynamics amid geopolitical pressures.
Most participants at Semicon China are domestic companies, focusing on semiconductor manufacturing equipment and materials. Notably, Naura Technology Group and Advanced Micro-Fabrication Equipment (AMEC), two Chinese giants in etching and deposition tools, have drawn significant attention from attendees.
Chinese foundries are increasingly collaborating with companies like Naura to secure vital components and machinery, aiming to maintain production even if they face additional sanctions from the US. AMEC reported a sales increase of over 30% in 2023, driven by strong demand from mainland semiconductor factories, and has stated that by the end of last year, it could replace 80% of restricted imported parts domestically, aiming for a 100% replacement rate in 2024.
