China Taking On US Fuels $147 Billion Rally in Japanese Chip Stocks
- Japanese chip equipment makers increasingly reliant on China
- Some see risk in China reliance at a time of US tensions
Technicians inspect a semiconductor wafer in the cleanroom at a semiconductor factory.
Photographer: Kobi Wolf/BloombergJapanese producers of chipmaking equipment are capitalizing on surging demand from China, catapulting their shares to new heights while helping build out a tech supply chain the US has warned may be a threat to global security.
In the 16 months since the US and its allies began curbing exports of advanced chip technology, China has amped up the purchase of legacy equipment to make older-generation semiconductors. Its effort toward some self-sufficiency has been a boon for the likes of Tokyo Electron Ltd., which added $12 billion to its market value Tuesday after hiking its outlook citing a record proportion of sales going to China.