China Ramps Up US Chip Tool Imports Via Southeast Asia as Direct US Shipments Hit 8-Year Low

China's imports of chipmaking equipment from Malaysia and Singapore surged to record highs in 2025, even as direct shipments from the United States plunged to their lowest level in eight years, according to an analysis by Nikkei Asia of Chinese customs data. The shift signals a deepening supply chain workaround as Washington tightens export controls on advanced semiconductor technology to Beijing.

Imports from Singapore reached $5.7 billion, up more than 17% year-over-year, while shipments from Malaysia more than doubled to $3.4 billion compared to 2024. In contrast, direct imports from the US fell more than 34% to approximately $2 billion, the lowest since 2017. The decline aligns with President Trump's return to the White House and his administration's sharp restrictions on US semiconductor access to China, though American companies remain a vital source of advanced tools for the country.

The data underscores a growing pattern: China is routing US-origin chipmaking equipment through Southeast Asian intermediaries to bypass direct trade barriers. While the Netherlands and Japan remain China's primary foreign sources of critical semiconductor manufacturing machines by shipment origin, the spike in imports from Malaysia and Singapore suggests these hubs are being used as transshipment points or final assembly locations for US-designed tools. The trend raises pressure on US export enforcement and signals that supply chain restructuring is accelerating despite geopolitical tensions.