China Boosts Semiconductor Equipment Imports to $40bn Amid US Sanctions

Despite challenges, Chinese tech giants make strides in domestic chip development.

China has imported nearly $40 billion worth of semiconductor equipment in 2023, a 14% increase from 2022, in an attempt to boost its domestic chip industry and circumvent US sanctions.
US and other countries have blocked the sale of the most powerful microchips to China, fearing they will be used in sensitive areas such as the military, artificial intelligence and cyber security.
China's imports from the Netherlands, home to key semiconductor equipment producers, increased significantly, despite the Netherlands imposing restrictions on Chinese companies.
China's efforts to achieve chip self-sufficiency still face challenges as it relies heavily on Western countries for the production equipment.
Despite the US sanctions, Chinese companies like Huawei and SMIC have made significant progress in developing advanced chips domestically.