Four years ago, China had a chipmaker in the global top 20. Today he has three

China has gone from having one chip equipment manufacturer in the world’s top 20 in 2022 to having three at the start of 2026.

US sanctions, designed to limit Chinese access to this advanced technology, have ended up driving just the opposite: the local industry has become stronger and continues to increase its independence.

Why is it important. This advance questions Western technological dominance in such a critical sector that has led to a trade war. The manufacturing of machinery to make semiconductors was a Chinese weakness and is now becoming a real alternative. And the speed at which it is happening tells us that trade restrictions may end up being counterproductive.

The protagonists:

The context. Three years ago, China manufactured just 10% of its semiconductor equipment locally. Today that figure is between 20% and 30%, according to Tetsuo Omori, an analyst at Techno Systems Research in statements to Nikkei Asia.

The government has put in a lot of money through national and local funds, and that has caused an explosion of manufacturers that now cover all stages of production.

Between the lines. Western and Japanese companies have two problems on the table:

1. In the short term, more competition in the Chinese marketwhich grew 35% in 2024 to $49.5 billion.
2. In the long term, see how its technological advantage is being curtailed while the Chinese supply chain gains muscle.

Yes, but. China still has not mastered the most advanced technology. Extreme ultraviolet (EUV) lithography systemsessential for 2 and 3 nanometer chips, are only manufactured by ASML.

ASML CEO Christophe Fouquet He said it will take China “many, many years” to develop that capability.. It sounds like a message of calm for the West, but China’s recent history does not encourage us to take anything for granted.

In dispute. The race for leadership in semiconductors is now played on two boards.

1. One is technological: who manages to manufacture the most advanced chips.
2. The other is self-sufficiency: who manages to control more links in their supply chain.

China is losing in the first but is advancing very quickly in the second. And that could change the rules we knew even more.

In Xataka | The ASML-Mistral alliance reveals the European plan B: if we cannot manufacture chips, at least we will control how they are manufactured

Featured image | ASML