China Racing to Buy Key Chip Materials From US Suppliers

Chinese firms have stepped up their purchases of materials needed to make chips and electronics from US suppliers ahead of the new year, fearing they may soon face stricter export curbs, Nikkei Asia reported.

US companies making consumable materials critical to chip fabs — ranging from inspection and testing equipment to advanced lubricants — have seen a surge in orders from China since November, Nikkei said. Chinese buyers told the newspaper that supplies from US companies like DuPont, Entegris and Chemours were superior in quality, compared to local options.

The Biden Administration also added 140 Chinese firms to a trade blacklist, including several of the country’s top chip equipment makers. That gives US suppliers time until next month to wrap up business with entities on the blacklist.

The US government is expected to further tighten export restrictions under China-critic Donald Trump. The US has already said it will not allow government agencies to procure products containing Chinese chips or services from December 2027. That’s even as only 17% of American companies can say their products do not contain Chinese chips, Nikkei noted.

That threat of increased US tech sanctions has also pushed Chinese chipmakers and equipment providers to ramp up their search for alternative sources for advanced materials. The firms are looking to replace as many foreign suppliers of chemicals and materials as possible with domestic ones, Nikkei said.

Read the full report: Nikkei Asia

Vishakha Saxena

Vishakha Saxena is the Multimedia and Social Media Editor at Asia Financial. She has worked as a digital journalist since 2013, and is an experienced writer and multimedia producer. As a trader and investor, she is keenly interested in new economy, emerging markets and the intersections of finance and society. You can write to her at [email protected]