What percentage of the combined revenue of the top five semiconductor manufacturing equipment producers will come from China in 2021?

Related questions. This question is part of a cluster that includes U.S. exports of semiconductor chips to China, U.S. exports of semiconductor manufacturing equipment to China, Chinese imports of semiconductor chips, and Chinese imports of semiconductor manufacturing equipment.

Context. The semiconductor manufacturing process has many components manufactured through complicated, highly globalized supply chains. China's ability to produce advanced semiconductor chips is particularly dependent on U.S., Japanese, and Dutch imports of advanced semiconductor manufacturing equipment (SME) -- i.e., the tools used by chip factories to make chips. The top five SME companies globally are:

• United States: Applied Materials; Lam Research; KLA
• Japan: Tokyo Electron
• Netherlands: ASML

Although China is building up its chip manufacturing capacity using imported SME, it is still reliant on imports for most of the semiconductor chips it consumes. China is especially reliant on the United States, Taiwan, and South Korea for imports of the most advanced semiconductor chips. Therefore, export controls on chips could reduce China's access to them. If China cannot import SME, it will remain dependent on imports for chips. This question focuses on SME. The United States is considering a number of actions that would reduce the export of SME to China. In September, the Trump Administration restricted exports to China’s Semiconductor Manufacturing International Corporation (SMIC). 

Data and resolution details. This question resolves based on the companies' quarterly and annual public filings through the quarter ending December 31, 2021. At that date, we expect to have data for all five companies through all of 2021 with the exception that we'll have data for KLA only through June 30, 2021.

As of December 3, 2020, the figure for 2020 in the graph below includes the following: Lam Research through September 30, 2020; Applied Materials through September 30, 2020; KLA through June 30, 2020; and Tokyo Electron through September 30, 2020. We will supplement the graph with additional 2020 data as it becomes available. In particular, ASML data for all of 2020 will be added after ASML submits its annual financial report covering the period through December 31, 2020.

The data underlying the graph is here.

This question is a metric for a forthcoming scenario on the future of the semiconductor industry.

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