Financial Wire

Market Chatter: China Increasingly Looks to Southeast Asia for Chip Tool Imports Amid Tighter US Controls

-- The share of Malaysia and Singapore in China's chipmaking equipment imports surged in 2025, exceeding those from the US, Nikkei Asia reported Wednesday.

Imports from the Southeast Asian nations hit an all-time high, with those from Singapore rising more than 17% year over year to $5.7 billion and those from Malaysia more than doubling to $3.4 billion, according to the report.

The increase is driven by the expansion of US chip equipment makers' manufacturing capacity in Southeast Asia to cater to non-US clients, the report cited Needham & Co. semiconductor analyst Charles Shi as saying.

US imports dropped more than 34% to about $2 billion, setting an eight-year low, the report cited Chinese customs data as saying.

Increased tariffs and export controls targeting China's chipmaking industry under President Donald Trump have contributed to the slowdown, according to the report.

However, China continues to be a key revenue source for major US chip equipment producers last year, the report said.

The Netherlands and Japan are still China's main foreign sources of key semiconductor manufacturing machines by shipment origin, Nikkei Asia said.

Meanwhile, China's domestic chipmaking equipment manufacturing industry is seeing material expansion amid government efforts promoting locally produced tools, the report said.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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