China’s appetite for chipmaking tools is causing commercial difficulties for non-Chinese companies, depriving them of equipment and hence their capacity to manufacture chips
MAKING CHIPS is complex work. Semiconductor manufacturers such as Intel, Samsung and TSMC themselves rely on machine tools built by an array of firms that are far from household names. The equipment sold by Applied Materials, Tokyo Electron, ASML, KLA and Lam Research is irreplaceable in the manufacture of the microscopic calculating machines that power the digital economy.
This new reliance has created political and commercial problems, particularly for the trio of American toolmakers: Applied Materials, KLA and Lam Research. The Chinese government has thrown hundreds of billions of dollars at the country’s chipmakers. As each of the American trio is dominant across different steps of the chipmaking process, the unavoidable conclusion is that America’s most advanced technology is furthering China’s economic goals.
China’s appetite for chipmaking tools is also causing commercial difficulties for non-Chinese chipmakers, depriving them of equipment and hence their capacity to manufacture chips. On April 14th C.C. Wei, the boss of TSMC, said the Taiwanese firm had encountered an unexpected “tool delivery problem” that threatened its ability to make enough chips. Though he did not blame China, chip-industry insiders claim it as the likely cause.
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