China Chip Equipment Hits 35%; Vacuum Valves and RF Power Remain 80% Foreign
China's domestic chip equipment share reached 35% in 2025, up from 25% the year before, according to the National Development and Reform Commission. Progress is uneven, with significant reliance on foreign suppliers for critical components like RF power supplies and vacuum valves. NAURA Technology Group, AMEC, and ACM Research Shanghai are among the top 20 semiconductor equipment suppliers globally, with NAURA's revenue expected to reach $7.0 billion to $7.7 billion in 2026.
How this was made
The 30-second read
Why it matters
The disclosed sub‑component dependence creates export‑control risk for foreign suppliers and underscores the limited depth of China's equipment localization.
Market read
The article signals a structural supply‑chain gap that could affect pricing and demand for foreign RF and valve suppliers, with implications for related equities.
What to watch
Potential policy shifts in US export controls and Chinese state funding (Big Fund III) could alter the timeline for localization.
Background
China's NDRC reports domestic chip equipment share at 35% in 2025, but sub‑components like RF supplies and precision valves remain 80‑90% foreign‑sourced.
Ticker impact
MKS Instruments supplies 65-75% of global RF power supplies, a sub‑component where China remains 80‑90% import‑dependent.
Short‑term upside if export restrictions tighten, downside if Chinese substitutes accelerate.
China's reliance on MKS for advanced RF supplies creates a direct export‑control risk exposure.
Market effects
Reveals a major sub‑component bottleneck in China's semiconductor equipment supply chain, suggesting continued demand for foreign RF and valve suppliers.
China's push may pressure Asian component makers but benefits US equipment vendors exposed to export‑control risk.
Highlights geopolitical supply‑chain risk that could affect global semiconductor equipment pricing and investment flows.
Counterpoint
China may accelerate domestic development of RF supplies and valves, reducing long‑term reliance on US firms faster than anticipated.
Key entities
- CompanyMKS Instruments
US supplier of RF power supplies for semiconductor equipment.
- CompanyAdvanced Energy Industries
US provider of high‑power RF supplies for advanced etch tools.
