China’s chip-tool imports surge from Singapore and Malaysia as direct U.S. purchases slump

Supply-chain shift in numbers

It has been reported that China's imports of chipmaking equipment from Singapore rose 17% year‑on‑year to $5.7 billion in 2025, while imports from Malaysia more than doubled to about $3.4 billion. At the same time, direct imports from the United States fell sharply — allegedly down about 34% year‑on‑year to roughly $2 billion, marking an eight‑year low, according to a Nikkei Asia analysis. Those Southeast Asian totals now outstrip direct U.S. shipments, and both Singapore and Malaysia hit record levels.

Why the detour?

So what’s going on? It has been reported that companies inside China are increasingly sourcing advanced tools through regional hubs rather than buying directly from the U.S. That can reflect a combination of factors: tighter U.S. export controls on high‑end semiconductor equipment, savvy supply‑chain re‑routing by suppliers and buyers, and booming demand inside China as local chipmakers’ earnings surge. Allegedly, American-made tools continue to flow into China — just with more intermediaries in the middle.

Stakes and fallout

This is not just a trade statistic. It’s a snapshot of the larger tech Cold War: enforcement at borders meets commercial pressure and creative logistics. Chinese firms get access to sophisticated kit; U.S. vendors keep revenue lines open, and policymakers on both sides are left trying to square market realities with security goals. For an industry racing to scale next‑generation nodes, the practical question remains—can rules keep up with entrepreneurial workarounds, or will the game change yet again?

Sources: asia.nikkei.com