China's chip tool imports from Southeast Asia, particularly Singapore and Malaysia, reached record levels in 2025, according to Nikkei Asia's analysis of customs data. The surge reflects the expanding manufacturing presence of US chip tool makers like Lam Research, Applied Materials, and KLA in the region, as they establish production facilities to serve both global and Chinese markets.

Meanwhile, Japan and the Netherlands remain China's primary foreign suppliers of chipmaking equipment, with combined shipments exceeding $77 billion between 2020 and 2025. This comes as China's domestic equipment champions report record earnings, prompting US policymakers to propose the MATCH Act to tighten export controls on critical supply chain "chokepoints."

Taiwan's semiconductor sector shows robust demand, with ASE Technology breaking ground on a $3.4 billion advanced chip testing facility in Kaohsiung, expected to begin production in 2027. The company plans to increase capital spending beyond its $7 billion target for 2026, constructing six plants simultaneously. Silicon Motion's president noted unprecedented NAND flash price surges of four to ten-fold since last year, driven by AI-driven storage demand.