China Semiconductor Equipment: AMEC, Naura, Local Supply Chain
China's semiconductor equipment industry is rapidly closing the technology gap with global leaders, driven by US export controls that accelerated domestic substitution. AMEC (Advanced Micro-Fabrication Equipment) became the world's second-largest etching tool supplier behind Lam Research. Naura Technology dominates China's deposition equipment market with growing exports. SMEE (Shanghai Micro Electronics Equipment) shipped its first 28nm DUV lithography machines. China's domestic equipment market share grew from 5% in 2020 to 30% in 2025, with the government targeting 50% by 2028.
TL;DR
AMEC became #2 global etching tool supplier. Naura leads China deposition equipment market. SMEE shipped first 28nm DUV lithography. Domestic equipment share grew from 5% to 30%. Government targets 50% by 2028.
Key Insights
AMEC Global Rise
AMEC's inductively coupled plasma (ICP) etching tools captured 15% of the global etching market, second only to Lam Research. Key clients include TSMC, Samsung, and SK Hynix. Revenue exceeded 10 billion RMB in 2025 with 40% gross margins. AMEC's tools are qualified for 5nm production nodes.
Naura Deposition Leadership
Naura Technology holds 60% of China's deposition equipment market (PECVD, ALD, sputtering). Revenue reached 30 billion RMB with 50% annual growth. Naura's ALD tools achieved qualification for advanced logic nodes at SMIC and YMTC. The company is expanding into the global market with sales to Southeast Asian fabs.
SMEE Lithography Progress
SMEE shipped its first domestically-produced 28nm DUV immersion lithography machines to Chinese fabs. While still behind ASML's EUV (13.5nm) and High-NA EUV (2nm) systems, SMEE's progress from 90nm to 28nm in 5 years is unprecedented. China aims to produce EUV-class tools by 2030, though experts consider this timeline ambitious.
Import Substitution
China's domestic semiconductor equipment share grew from 5% in 2020 to 30% in 2025, driven by US sanctions forcing Chinese fabs to source locally. SMIC, YMTC, and CXMT are actively qualifying domestic equipment. The government allocated 500B RMB in subsidies for equipment R&D. China still depends on imports for EUV lithography and some advanced metrology tools.
Side-by-Side Comparison
| Company | Equipment Type | Technology Node | Global Rank | Revenue (B RMB) |
|---|---|---|---|---|
| AMEC | Etching (ICP, CCP) | 5nm qualified | #2 global etching | 10+ |
| Naura Technology | Deposition (PECVD, ALD) | Advanced logic | #1 China deposition | 30+ |
| SMEE | Lithography (DUV) | 28nm (immersion) | #3 global lithography | 5+ |
| Kingsemi | Ion implantation | 28nm qualified | #2 China implant | 3+ |
| ACM Research | Cleaning (wet bench) | Advanced nodes | Top 5 global cleaning | 5+ |
| Jingyuan (Mattson) | Thermal processing | Advanced nodes | Top 5 global RTP | 3+ |
| U-Precision (ULVAC JV) | Vacuum equipment | 28nm+ | China niche | 2+ |
| Fortrend (PSK) | CMP equipment | 28nm+ | Growing | 1+ |
Frequently Asked Questions
China's path to semiconductor equipment self-sufficiency faces significant challenges but is making unprecedented progress: current state, China's domestic equipment share reached 30% in 2025, up from 5% in 2020, covering most process steps except EUV lithography and some advanced metrology; achievable targets, by 2028 China could realistically reach 50% domestic share by dominating mature node equipment (28nm and above) where technology requirements are more forgiving; critical bottleneck, EUV lithography remains the single biggest gap, as ASML's EUV tools require precision optics (Zeiss), specialized lasers (Trumpf), and decades of expertise that cannot be replicated quickly; deposition and etching, China has achieved near-parity in etching (AMEC) and deposition (Naura) for mature nodes, and is closing the gap for advanced nodes; cleaning and thermal, ACM Research and Jingyuan have achieved competitiveness for most applications; metrology and inspection, this remains a significant gap, as KLA's e-beam inspection and ASML's metrology tools have no Chinese equivalents at advanced nodes; talent and knowledge, China faces a shortage of experienced process engineers, though the government's semiconductor talent programs are producing 50,000+ graduates annually; and realistic timeline, most industry analysts expect China to achieve functional self-sufficiency for 28nm production by 2027-2028 and for 14nm by 2030-2032, but EUV-equivalent capability for sub-7nm production likely requires until 2035 or beyond. The US sanctions paradoxically accelerated China's progress by forcing immediate adoption of domestic equipment, creating the demand-pull that drives investment and learning curves.