Value of 1 billion US dollars, equipment giant‘s manufacturing business has significantly withdrawn from China

Source: Tiantian IC

    On January 29th, a spokesperson for semiconductor testing equipment supplier Tereida stated that after supply chain disruptions caused by US export regulations, Tereida withdrew approximately $1 billion worth of manufacturing from China last year.

    A factory in Suzhou is the main manufacturing base for the company‘s semiconductor testing equipment, and Tairuida has also subcontracted it to Weichuangli.

    After the US imposed restrictions on semiconductor manufacturing exports in October 2022, Teradyne, headquartered in Massachusetts, transferred its production out of China.

    Tairuida warned investors of the potential impact of US regulations in its 2022 annual report and stated in October 2023 that these restrictions have affected Tairuida‘s sales, manufacturing, and development businesses with certain companies in China.

    Last Friday, Brian Amero, the Global Compliance and Ethics Director of Terida, discussed the withdrawal from China at a virtual export conference.

    "We manufacture in China, so we must obtain urgent authorization to continue this activity. However, we believe that the risk is too high, so we will relocate our manufacturing business out of China at a high cost," said Amero at the annual export fair at the Massachusetts Export Center

    Amero stated that despite obtaining authorization, some suppliers still do not ship to the company, leading to supply chain disruptions. The company reported that it ultimately obtained permission to mitigate the regulatory impact, and when the United States updated its rules in October 2023, it established exceptions for testing equipment used after wafer manufacturing.

    He said that although Terida is not a "direct target" of these rules, the company "has been significantly affected by these rules. We see this reflected in market share."

    Amero did not provide specific numbers. But in the three months ending October 1st, the Chinese market accounted for 12% of revenue, compared to 16% in the same period last year.