China’s chip equipment imports rise 16% in August as AI demand fuels semiconductor buildout

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China’s chip equipment imports rise 16% in August as AI demand fuels semiconductor buildout

The rebound follows a sluggish first half of the year and signals that China’s semiconductor manufacturing ambitions remain very much alive despite US export controls.

by
Editorial Team

Sep. 23, 2026

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China’s imports of semiconductor manufacturing equipment jumped 16% in August, according to Jefferies, marking another data point in what’s shaping up to be a meaningful second-half recovery for the world’s most watched chip supply chain.

The August figure lands on top of a July that already showed signs of revival. Barclays reported that semiconductor equipment imports rose 9% year-over-year in July, a welcome reversal after a first half that was, to put it gently, underwhelming. Q1 imports dropped 16%, and Q2 managed only a 1% dip. So the trend line has bent sharply upward.

The numbers behind the rebound

August’s broader import picture paints an even more aggressive expansion story. Overall Chinese imports grew 28.2% year-over-year that month. Hi-tech product imports climbed 68.7%, and semiconductor imports specifically surged 83.6%.

Drilling into the July equipment data from Barclays offers a useful breakdown of where the money is going. Wire bonders, the machines used in back-end semiconductor assembly, saw a 61% year-over-year increase. Lithography equipment rose 7%. Chemical vapor deposition tools climbed 15%.

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Logic-chip production equipment was a notable area of growth in July as well, consistent with China’s broader push to reduce its dependence on imported processors.

Rerouting around restrictions

This rebound is happening against a backdrop of tightening US export controls on advanced semiconductor technology to China. Direct US equipment imports to China fell to an eight-year low, according to available trade data.

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The decline in direct US shipments has been accompanied by record equipment flows through Singapore and Malaysia, suggesting that Chinese buyers are finding alternative channels to acquire what they need.

China accounted for approximately 36% of global wafer fabrication equipment spending during 2024 and 2025. The nation imported $49.2 billion of semiconductor manufacturing equipment in 2024, eclipsing the total imports of Taiwan and South Korea combined.

Barclays projects China’s wafer fabrication equipment spending will grow 10% in 2026 and accelerate to 15% in 2027.

What’s driving the buildout

Shanghai has emerged as a focal point for this expansion, with broader trends in tech-related imports reflecting its status as a hub for advanced manufacturing investment.

Risks worth watching

Analysts have flagged normalization pressures as a risk, noting that the current surge could moderate once the initial wave of AI-related capacity buildout matures and utilization rates catch up with installed capacity.

US export controls have already reshaped trade flows, and the rerouting through third countries remains a workaround rather than a permanent solution. For equipment suppliers, a 16% August jump and a projected 10-15% annual growth rate through 2027 represent a substantial revenue opportunity, but the companies most exposed to China revenue also carry the most geopolitical risk in their earnings.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.