In the last three months through March, Japan saw at least 50% of its exported semiconductor manufacturing equipment shipments being directed to China, marking a third consecutive quarter of this trend.
The surge in shipments to China is likely driven by an increased demand for less advanced equipment, a consequence of U.S.-led trade restrictions.
According to Japanese trade data, China has been a significant recipient of semiconductor manufacturing equipment and components, accounting for half of these shipments. The total value of these exports to China has reached JPY 521.2 billion, equivalent to USD 3.32 billion.
The increase in exports to China may be partially attributed to a rush to purchase equipment amidst stringent trade restrictions. Chinese manufacturers, unable to access advanced semiconductor equipment due to these restrictions, have shifted their focus to producing general-use chips.
This shift has resulted in a spike in the demand for chipmaking gear that falls outside the scope of the trade curbs. Despite experiencing a global downturn in the semiconductor market during the latter half of 2022, recent data indicates signs of recovery.
Notably, Japan's global exports of chipmaking equipment have increased by 13% in the last quarter, marking the first upturn in five quarters. This growth reflects a resurgence in the semiconductor industry and a continued robust demand for essential manufacturing equipment, particularly from China.
