Naura Technology reports 44% YoY profit growth in Q1 2024, capturing 11% of global semiconductor equipment market as China accelerates domestic chip production despite U.S. advanced packaging sanctions.
Naura Technology Group announced a 44% year-over-year profit increase to $580 million in Q1 2024, according to Digitimes’ exclusive financial report (June 25). The Beijing-based equipment maker now holds 11% of the global semiconductor tools market, doubling its 2023 share, as Chinese foundries rapidly adopt domestic alternatives to bypass Western export controls.
Market Expansion Through Strategic Subsidies
Naura’s growth stems from China’s $2.7 billion National IC Fund injection in June 2024 (TechInsights), enabling mass production of its 14nm-capable NMC612D dry etcher. This tool reduces reliance on Applied Materials’ Centris systems previously used by SMIC and Yangtze Memory. “Naura now fulfills 65% of domestic 28nm+ etching demand,” noted Digitimes analyst Chen Wei.
Geopolitical Pressures Reshape Supply Chains
The U.S. Commerce Department’s June 20 restrictions on ABF film exports threaten China’s chiplet ambitions, forcing Naura to develop alternative packaging materials with Sinopec. Meanwhile, ASML reported 18% lower China sales in Q2 as local fabs prioritize domestic tools, per SEMI’s June 28 market update.
Technological Leapfrogging Challenges
While Naura dominates mature nodes, it trails ASML in EUV technology critical for sub-5nm chips. TechInsights’ July report shows Chinese foundries still import 92% of advanced lithography tools. However, Naura secured 14 new contracts since May for its 14nm etchers from HuaHong Semiconductor and CXMT.
Analytical Context: China’s Dual Circulation Strategy
China’s semiconductor equipment market grew from $3.8 billion (6% global share) in 2020 to $18.4 billion (11%) in 2024, mirroring Japan’s 1980s ascent. Unlike South Korea’s 1997 memory chip focus, Beijing prioritizes equipment localization – domestic tool usage rose from 12% (2021) to 38% (2024) in mature nodes. However, material shortages echo 2010 rare earth disputes, suggesting new supply chain vulnerabilities as China pushes 70% self-sufficiency by 2027.
