China’s surging chip tool imports from south-east Asia

TL;DR

China imported record chipmaking equipment from Singapore and Malaysia in 2025, surpassing direct US shipments amid export controls.
Singapore imports hit $5.7 billion, up over 17%; Malaysia $3.4 billion, more than double 2024; US fell 34% to $2 billion low.
US firms like Applied Materials and Lam Research route tools via Southeast Asia hubs, sustaining China sales over 30% of revenue.

The story at a glance

China's imports of semiconductor manufacturing equipment from Singapore and Malaysia reached record highs in 2025, overtaking direct imports from the US, which dropped sharply due to tightened export controls. Key players include US companies Applied Materials, Lam Research and KLA, which have expanded production in the region, alongside Dutch firm ASML and Japanese makers like Tokyo Electron. The FT article, part of the #techAsia series with Nikkei Asia, reports this now based on Chinese customs data analysis as supply chains shift.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)

Key points

Imports from Singapore rose more than 17% year on year to $5.7 billion; from Malaysia more than doubled to $3.4 billion, a Nikkei Asia analysis of customs data shows.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)
Direct US imports declined over 34% to about $2 billion, the lowest since 2017, following US tariffs and controls started under Trump and continued by Biden.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)
US firms earned over 30% of fiscal 2025 sales from China: Applied Materials, Lam Research and KLA generated nearly $19 billion combined, despite origin-based data.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)
Japan led cumulative 2020-2025 imports at over $42 billion, Netherlands $35 billion; both remain top sources overall.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)
Chinese equipment makers like Naura, AMEC and Piotech posted record 2025 revenues amid Beijing's self-sufficiency drive, though margins face pressure from competition.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)

Details and context

US export controls aim to limit China's access to advanced chip tools for AI, defence and space, but firms have shifted manufacturing to Malaysia and Singapore to serve regional demand, including China. Lam Research is building capacity in Malaysia; Applied Materials and KLA in Singapore. This allows continued sales while complying with rules on direct shipments.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)

China's total chip equipment imports stay high as fabs expand, but domestic suppliers are gaining share, especially in etching and deposition. Naura's revenue jumped from $887 million in 2020 to much higher by late 2025; others saw multiples growth. Still, foreign tools outperform on reliability, so imports persist alongside localisation.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)

US lawmakers introduced the MATCH Act in April 2026 to close loopholes by targeting components and aligning allies like Japan and Netherlands on older tools vital to firms such as SMIC and YMTC.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)

Key quotes

"The uptick in China's imports from Southeast Asia is mainly due to the large number of U.S. chip equipment makers expanding manufacturing capacity in the region." — Charles Shi, Needham & Co.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)

"Intensifying domestic competition might have forced domestic equipment companies to 'race to the bottom' by undercutting each other's prices." — Charles Shi, Needham & Co.[[1]](https://asia.nikkei.com/business/technology/tech-asia/china-snaps-up-us-chip-tools-via-southeast-asia-amid-supply-chain-shift)

Why it matters

US controls slow but do not stop China's chip industry growth, as workarounds sustain access to critical tools and highlight limits of unilateral curbs. Investors in US equipment makers see steady China revenue via diversified production, while Chinese firms gain from import bans but face margin squeezes; Southeast Asia benefits as a hub. Watch the MATCH Act's progress and allied responses, plus 2026 customs data for import trends.