The previous US president went to great lengths to ruin the lives of many Chinese companies. The leader of the semiconductor industry in the PRC, SMIC, came under sanctions that deprived it of access to advanced lithographic equipment. Other companies in this sector, assessing the position of the new US authorities, decided to resume purchases.

In 2020, amid a pandemic and uncertainty about the future political course of the United States, according to DigiTimes, many Chinese companies have frozen projects for the construction of enterprises for the production of semiconductor components. Although the situation in relations between the United States and China has not improved, it has become clearer, so Chinese manufacturers decided to resume the construction of new enterprises.

According to industry sources, Chinese companies will try to avoid American sanctions by bypassing advanced lithographic technologies tightly controlled by the United States, as well as excluding participation in military projects. At the end of 2020, the PRC authorities offered tax incentives to all companies in the local semiconductor sector for up to ten years, subject to the projects’ involvement in the production of 28nm, 65nm and 130nm products. These measures also had a stimulating effect on the development of Chinese industry.

The Taiwanese company Nova Technology, according to the source, this year has already entered into several new contracts with Chinese customers for the supply of lithographic and optoelectronic equipment. Memory manufacturers have increased their activity in building factories in several areas of China. From February to March, Nova Technology’s revenue increased 51,83% to a record $ 12,07 million, driven primarily by demand from Chinese customers. At the end of last year, the company received up to 70% of its revenue in China.