US Export Controls Fuel Revenue Surge For Chip-Tool Maker Naura

Matthew Broersma,
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Chinese chip manufacturing equipment maker Naura Technology sees spike in share price after reporting 50 percent revenue rise for 2023

China’s biggest semiconductor equipment manufacturing firm, Naura Technology Group, has said it expects revenue for last year to jump by up to 57 percent as US sanctions force domestic chip manufaturers to seek alternatives.

The firm said in a regulatory filing on Monday evening that “technology breakthroughs” had helped it gain larger market share in China.

It said revenue for 2023 was expected to grow between 42 percent and 57 percent over the previous year, rising to between 20.9 billion yuan ($2.9bn, £2.3bn) and 23.1bn yuan.

While Chinese chip equipment makers such as Naura are far smaller than competitors from the US, such as Lam Research, the figures are the latest indicators that US sanctions may be jump-starting China’s efforts to develop its own advanced semiconductor supply chain.

chip semiconductor
Image credit: Unsplash

‘Technology breakthroughs’

The sanctions, introduced in October 2022 and October 2023, are aimed at cutting off Chinese chip makers’ access to technology from Lam Research and other US firms.

“[Naura] has made technology breakthroughs and achieved volume production of more than a dozen of semiconductor equipment including etching, deposition and cleaning, and furnace, which help the company to cover more semiconductor manufacturing processes, leading to higher market shares,” Naura said.

It said net profits would rise between 57 percent and 80 percent to between 3.3bn yuan and 3.8bn yuan.

In July Naura said it expected profits to more than double year-on-year in the first half, rising 121 to 156 percent to as much as 1.93bn yuan.

Advanced chip tools

Naura said it received more than 30bn yuan worth of new equipment orders in 2023, more than 70 percent for semiconductor-related tools.

Its clients are China’s biggest foundries, including Yangtze Memory Technologies Corp (YMTC).

Lam Research suspended equipment supply and services to mainland China clients after the first round of export controls was introduced in October 2022.

Shenzhen-listed Naura’s shares spiked in value more than 5 percent on Tuesday on the news.

Advanced Micro-Fabrication Equipment China, Naura’s main competitor, has said it expects 2023 revenue to rise more than 30 percent.