In anticipation of strict US export controls, Chinese semiconductor companies are filling warehouses with chip-making equipment, components, spare parts, and important materials required for manufacturing to continue.
As the South China Morning PostSouth China Morning Post reports, there is apparently a real scramble to purchase unusually large orders of components before export restrictions cut off access. People familiar with the situation said one major semiconductor company in Beijing has already "filled several large warehouses" with materials and components.
The orders being placed aren't just for semiconductor products on the US export control list because there is a fear of "greater export restrictions down the road." An unnamed source in Tokyo who handles Japanese component orders for Chinese customers confirmed companies are "overbuying" to ensure their current production plans aren't interrupted regardless of what happens with export controls. Japan is set to impose new restrictions, but Japanese companies are awaiting guidance which is expected to be provided by April.
The US sanctions mean China doesn't have access to the most advanced chip manufacturing equipment, which has seen the focus shift towards the development of RISC-V chips. However, that will require research and development over the next few years and in the meantime Chinese companies will need to keep producing the chips they can, hence the stockpiling.
As for the fear of greater export restrictions, it's warranted based on recent activity that adds fuel to the fire for further action by the US government. First Huawei was found trying to sidestep US sanctions, then there was the incident with the Chinese spy balloon, and only last week seven former Samsung employees were jailed for stealing chip secrets for China. A former ASML employee is also currently under investigation regarding ties to the Chinese government after they stole data from the chip company.