Chinese Chip Tool Makers Hit Record 2025 Revenues

Why It Matters

The trend signals China’s growing self‑sufficiency in chip‑making equipment, reshaping global supply chains and pressuring foreign vendors that still depend on the Chinese market.

Key Takeaways

• Naura posted ~¥27.1bn ($3.8bn) revenue Q1‑Q3 2025.
• AMEC, Piotech revenues grew >5x and 13x since 2020.
• Domestic tool makers face margin pressure amid intensifying competition.
• US equipment shipments to China fell 34% to $2bn in 2025.
• Singapore and Malaysia imports rose to $5.7bn and $3.4bn.

Pulse Analysis

China’s domestic equipment sector is entering a new scale era, driven by a coordinated state push to expand capacity at leading fabs such as SMIC, YMTC and CXMT. Revenue data from Naura, AMEC, ACM Research and Piotech show a combined surge that dwarfs pre‑2020 levels, with Naura alone generating roughly $3.8 billion in the first three quarters of 2025. This growth is not merely a short‑term spike; it reflects a strategic policy to substitute imported wafer‑fab tools with home‑grown alternatives wherever performance gaps are narrow enough to be acceptable.

Despite the headline‑grabbing top‑line numbers, profitability is under strain. Needham analyst Charles Shi notes that margins are compressing as more domestic players crowd the deposition, etch and related process‑step markets. The competitive landscape forces vendors into price wars, eroding the pricing power that larger scale might otherwise confer. At the same time, the supply chain has adapted: direct U.S. equipment shipments to China fell 34% to $2 billion, while imports routed through Singapore and Malaysia climbed to $5.7 billion and $3.4 billion respectively, underscoring a shift rather than a retreat in foreign tool presence.

For foreign equipment giants—Applied Materials, Lam Research, KLA and ASML—the data underscores a paradoxical exposure. While their combined China sales still approach $19 billion, the market’s gravity is increasingly pulling Chinese firms into a self‑sufficient orbit. This dynamic compels multinationals to reassess investment, partnership, and technology‑transfer strategies in China, balancing short‑term revenue opportunities against long‑term risks of a decoupled, domestically dominated ecosystem. The evolving landscape will likely accelerate consolidation among Chinese tool makers and intensify the push for advanced‑process capabilities that can rival foreign technology.