China has imported a near-record-breaking $40 billion worth of semiconductor equipment and machinery in 2023, a 14% increase from 2022, according to Bloomberg. Despite an overall decrease in imports, the sharp increase in these imports signals how aggressively China is pursuing its goal to achieve chip self-sufficiency and how it still needs to rely on the West to get there.
Partial and early data in 2023 suggested China spent an incredible amount of money importing semiconductor tools. These imports were worth $5 billion in June and July alone, up 70% compared to June and July in 2022. The U.S. has imposed sanctions in an attempt to stop China from importing particularly cutting-edge tools, but Chinese foundries have found ways to buy equipment that they normally wouldn't be allowed to.
