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Tom’s Hardware
Tom’s Hardware
Technology
Jowi Morales

China only produces 1% of critical litho chipmaking tools, exposing it to harsh US sanctions — investment in domestic toolmakers looks to reverse the trend

China.

China wants to dominate global chip manufacturing, but its ambitions are dashed by the hard reality of its low domestic production rates. According to a graph from a Nikkei report, China's domestic chipmaking tool manufacturers produce 20% of the tools the country uses for chipmaking, but it currently only has a production rate of 1% of the critically important lithography tools. This means the East Asian country needs to invest much more in its domestic chipmaking tool firms before it can be self-sufficient in meeting its chipmaking needs.

Those on the ground (semiconductor manufacturing companies and equipment manufacturers) are at their wits' end, but it's difficult for them to say so," says Yuji Miura in the Nikkei report. Miura is a senior researcher at the Japan Research Institute.

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