China races to buy critical chip materials from U.S. suppliers

Chinese companies have stepped up purchases of materials needed to make chips and electronic products from U.S. suppliers ahead of the new year, fearing they may soon face tighter export restrictions, Nikkei Asia reported.

“Nikkei” said that since November last year, U.S. companies that produce consumable materials critical to wafer factories, from inspection and testing equipment to advanced lubricants, have seen a surge in orders from China. Chinese buyers told the newspaper that products offered by U.S. companies such as DuPont, Entegris and Chemours were of higher quality than local products.

The Biden administration has also placed 140 Chinese companies on a trade blacklist, including several of the country’s top chip equipment manufacturers. This gives U.S. suppliers time until next month to complete business with entities on the blacklist.

The U.S. government, under China critic Donald Trump, is expected to further tighten export restrictions. The United States has said that starting in December 2027, it will not allow government agencies to purchase products containing Chinese chips or services.

The threat of increased U.S. technology sanctions has also prompted Chinese chipmakers and equipment suppliers to step up efforts to find alternative sources of advanced materials. Nikkei said the companies are seeking to replace as many foreign suppliers of chemicals and materials as possible with domestic suppliers.

Read the full report: Nikkei Asia

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Visakha Saxena

Vishakha Saxena is Asia Finance’s multimedia and social media editor. She has worked as a digital journalist since 2013 and is an experienced writer and multimedia producer. As a trader and investor, she is interested in the new economy, emerging markets, and the intersection of finance and society. You can write to her: [email protected]