Naura Technology and AMEC lead China’s semiconductor equipment surge with 14nm breakthroughs, reducing reliance on Western tools as tariffs reshape global supply chains.
Chinese semiconductor equipment manufacturers Naura Technology and AMEC now command 24% of China’s domestic market, according to a June 2024 Digitimes report. Recent SEMI data shows local sourcing of etching/deposition tools surged to 65% in Chinese fabs, with TSMC confirming integration of Naura and AMEC equipment in hybrid production lines to Nikkei Asia.
Domestic Manufacturing Momentum
China’s semiconductor equipment imports plummeted 28% year-over-year in May 2024, according to Customs data, while domestic sales grew 67% (SEMI China Chapter). This shift follows Naura’s June 20 unveiling of its 14nm-capable Prismo A9 atomic layer etch system, which Caixin Global reports performs comparably to Lam Research’s Syndion GP at 60% of the cost.
Technological Leapfrogging
AMEC achieved a critical breakthrough with tungsten atomic layer deposition using domestic rare earth catalysts, enabling tool compatibility with advanced nodes. ‘Our Primax D Series now handles 28nm back-end processes at TSMC,’ AMEC CTO Dr. Wei Zhang told UDN on June 17, marking the first Chinese equipment in TSMC’s N5 supply chain.
Supply Chain Reconfiguration
The SEMI report reveals Applied Materials and Lam Research’s combined China market share in etching/deposition tools dropped from 58% in 2022 to 31% in Q2 2024. South Korea’s Wonik IPS reported 19% revenue decline in China, while Japan’s TEL faces pressure to develop export-control-compliant equipment designs.
Global Ripple Effects
Analysts note China’s ‘closed-loop innovation model’ combining CAS research institutes with domestic manufacturers could create self-sufficient semiconductor ecosystems by 2026. ‘This isn’t just import substitution – they’re building export-capable alternatives,’ warned TechInsights VP Robert Maire during a June 19 industry webinar.
Historical data shows China’s chip equipment localization rate stood at 7% in 2017 before the US-China trade war. The current 24% domestic market share mirrors South Korea’s semiconductor equipment development trajectory from 1998-2008. Market analysts project Chinese equipment makers could capture 15% of the global backend equipment market by 2025 if current R&D investment trends continue.
