Post by Adam Walker

The shifting dynamics of the semiconductor supply chain are fascinating, especially when considering Southeast Asia's growing role in China's access to chipmaking equipment. This transformation is driven by tighter US semiconductor export controls on China, which cut down China's direct imports of US-made equipment by more than 34% last year, reaching the lowest level since 2017. Instead, China is pivoting towards Southeast Asia for its needs. For instance: - China imported US$5.7 billion of semiconductor equipment from Singapore in 2025, up by over 17%. - Imports from Malaysia more than doubled in the same period, reaching US$3.4 billion. This restructuring doesn't suggest any attempt to circumvent US export controls. Instead, it points to a more compliance-sensitive, regionalised procurement channel that aligns with stringent US-origin technology and regulatory norms. The top US chip equipment firms like Applied Materials, Lam Research, and KLA Corporation still maintain a substantial revenue share from China, highlighting a complex and intertwined global network. In particular, Southeast Asia, spearheaded by Singapore and Malaysia, has evolved into a critical hub bridging US technology systems and Chinese market demands. These countries are integral to mature-node tools, production capacity, process control, and servicing capabilities, rather than substituting high-end suppliers from the Netherlands and Japan. The strategic importance of Southeast Asia in this new landscape offers both opportunities and challenges: - Opportunities for strategic upgrading in the global supply chain - Increased exposure to US-China technological tensions Given these shifts, how do experts in the #semiconductor industry foresee the future of supply chains? Your thoughts? 💭 Feel free to drop your insights or get in touch to discuss further. #SemiconductorIndustry #SemiconductorEquipment #USChinaRelations