(Bloomberg) -- Two major Chinese chip equipment makers are predicting a doubling in profits after the US clamped on exports of American technology, forcing manufacturers to rely on homegrown alternatives.
Most Read from Bloomberg
-
Apple Tests ‘Apple GPT,’ Develops Generative AI Tools to Catch OpenAI
-
What a UPS Strike Would Mean For Consumers, Businesses and the Economy
-
A $500 Billion Corporate-Debt Storm Builds Over Global Economy
-
Nadella’s Microsoft Payouts Top $1 Billion on 1,000% Stock Boom
Advanced Micro-Fabrication Equipment Inc. said net income for the first half likely grew between 110% and 120%. Peer Naura Technology Group Co. reported on Friday a 121% to 156% increase in profit to as much as 1.93 billion yuan ($270 million) during the same period.
Chinese chipmaking gear leaders, which while much smaller than the likes of Applied Materials Inc. or Lam Research Corp., have stepped up research to replace equipment that carries American components or technology. Naura and Advanced Micro-Fab slid on Monday, after latest Chinese economic data missed estimates.
Beijing is accelerating a campaign to replace foreign tech and achieve self-sufficiency in key areas including semiconductors, as US-led multinational export controls start to cripple China’s ability to develop advanced chips. The Chinese government is prioritizing the building of a domestic chip supply chain to try and move past those sanctions and ensure it has enough semiconductors to power its economy.
Read more: ASML Faces Tighter Controls on Servicing Chip Gear in China
Most Read from Bloomberg Businessweek
-
No Testing, No Inspections: Contaminated Eyedrops Blinded and Killed Americans
-
This Supposed Mafia Manifesto Doesn’t Stand Up to a Google Search
©2023 Bloomberg L.P.