Chinese imports of the critical semiconductor equipment reached US$2.58 billion in the year through July, already more than the US$2.36 billion ASML projected.

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China’s imports of Dutch lithography machines have surged this year, with the first seven months already surpassing ASML Holding’s previous forecast for 2023 sales to China, according to a new report, as Chinese firms stock up on the equipment ahead of new export curbs.

From January to July, Chinese imports of Dutch-made lithography machines, nearly all from chip equipment giant ASML, grew 64.8 per cent year on year to US$2.58 billion, Chinese semiconductor industry consultancy JW Insights said in a report published on Friday, citing China customs data.

In January, ASML projected that its sales to China this year would remain steady at about 2.2 billion euros (US$2.36 billion), or 14 per cent of its total annual revenue.

In July, China imported US$626 million worth of lithography machines from the Netherlands, nearly eight times larger than the same month last year, according to the report.

ASML has a near monopoly on the world’s most advanced lithography machines, which are required for the production of cutting-edge chips. Under US pressure, the company has cut off exports of its extreme ultraviolet (EUV) lithography systems to China.

The company has until now been able to continue shipments of less advanced deep ultraviolet (DUV) lithography systems to the country, but that is expected to soon change.

Under new rules from the Netherlands that go into effect September 1, ASML will be required to apply for a licence from The Hague to ship its most advanced DUV lithography systems, dealing a fresh blow to China’s semiconductor industry.

As a result, Chinese firms have rushed to stockpile machines so they can continue to fulfil production demands for as long as possible after next month, JW Insights said.