China’s semiconductor equipment imports rise 9% YoY in July as logic chip spending accelerates

China’s semiconductor equipment imports climbed 9% year-over-year in July, according to a Barclays report, marking a sharp acceleration from June’s 4% growth and a decisive reversal from the slump that defined the first half of the year.

The rebound was fueled by two categories in particular: logic-chip equipment and back-end assembly tools. Shanghai emerged as a key hub for the uptick.

From contraction to comeback

The July numbers look even more impressive when you zoom out. Q1 imports had cratered 16%, and Q2 still posted a slight 1% decline overall.

Lithography equipment imports rose 7%, up from a modest 3% gain in June. Chemical vapor deposition (CVD) equipment surged 15%, a dramatic swing from the 16% decline CVD imports posted in the prior period. Etching equipment still declined but at a much gentler pace: July’s 6% drop was a meaningful improvement over June’s 24% plunge.

The standout performer was the assembly and back-end equipment category, which jumped 35% in July. That followed an even larger 43% increase in June. Within that segment, wire bonders posted a remarkable 61% increase.

Logic over memory

Barclays noted that this pattern aligns with recent commentary from ASML, which flagged rising logic demand from Chinese customers during its Q2 remarks.

Memory spending remains subdued. Barclays expects a pickup in memory-related capital expenditure during the second half of 2026.

What the numbers mean for the equipment supply chain

Barclays projects that wafer fabrication equipment imports will grow 10% for the full year 2026, with an even more bullish forecast of 15% growth for 2027.

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