China's imports of semiconductor manufacturing equipment rose by 16% in August, according to Jefferies. This follows a 9% year-over-year increase in July reported by Barclays, marking a recovery after a 16% decline in Q1 and a 1% dip in Q2.
In August, total Chinese imports grew by 28.2%, while high-tech product imports rose by 68.7% and semiconductor imports surged by 83.6%. July data showed a 61% increase in wire bonders, a 7% rise in lithography equipment, and a 15% growth in chemical vapor deposition tools.
Despite US export controls, which pushed direct US equipment shipments to an eight-year low, China accounted for approximately 36% of global wafer fabrication equipment spending in 2024 and 2025. The country imported $49.2 billion worth of equipment in 2024.
Barclays projects that China's spending on wafer fabrication equipment will grow by 10% in 2026 and accelerate to 15% in 2027. While equipment flows are being rerouted through Singapore and Malaysia, analysts warn that the current surge may moderate as AI-related capacity matures.
