US semiconductor export controls on China are both reducing China’s access to chipmaking equipment and changing the geography through which that access is organised. Several key parts of the semiconductor equipment supply chain are becoming more deeply rooted in Southeast Asia. China’s procurement network is becoming more regionalised, more compliance-sensitive and more dependent on third countries exposed to US political and regulatory pressure.
In 2025, China’s direct imports of US chipmaking equipment fell by more than 34 per cent year-on-year to around US$2 billion, the lowest level since 2017. At the same time, China’s imports of semiconductor manufacturing equipment from Singapore reached US$5.7 billion, an increase of more than 17 per cent, while imports from Malaysia reached US$3.4 billion — more than double the 2024 level.
This does not mean that Singapore, Malaysia or firms operating in those countries are circumventing or violating US export controls. But it does indicate that China’s procurement channels are undergoing a compliance-sensitive restructuring through Southeast Asia, including equipment components, assembly and testing-related items, spare parts, servicing capacity and packaging-related equipment.
