On June 14, 2026, Hong Kong media outlet Hong Kong01 reported on an article by Chinese media Kuai Technology regarding the reality of the U.S., Europe, and Japan monopolizing the semiconductor manufacturing equipment market and China's potential to counter it.

The article introduced that a diagram dissecting the semiconductor equipment supply chain recently spread and became a hot topic on social media X. The diagram revealed that the three regions of the U.S., Europe, and Japan mainly monopolize market share in processes such as lithography, development, and etching, and it was described as functioning as a means of external constraint in high-tech competition.

Furthermore, it pointed out that in the lithography process, ASML of the Netherlands boasts overwhelming strength, occupying 95% of the market share alone, and in other equipment fields, the three major giants of the U.S. — Applied Materials (AMAT), Lam Research (Lam), and KLA — hold 60-80% or more of the market share, possessing substantial technological dominance. Since ASML's laser systems are also supplied by U.S. companies, it ultimately conveyed that the entire supply chain (ecosystem) for next-generation technology called extreme ultraviolet (EUV), which is indispensable for manufacturing cutting-edge semiconductors, cannot exist without U.S. technology.

Moreover, Japanese companies are also an undeniable presence in this field, with Tokyo Electron (TEL) holding a dominant advantage in multiple processes, and companies like SCREEN Holdings, Lasertec, Hitachi, and lithography equipment manufacturers such as Canon and Nikon demonstrating their underlying strength.

The article explained that the semiconductor industry is a 'winner-take-all' world where, despite many sectors having market sizes of only around 1 billion dollars (approx. 160 billion yen) to 3 billion dollars (approx. 470 billion yen), only top companies can generate significant profits. It described the structure as one where the number of manufacturers able to enter each field is small, and even if they do enter, achieving results is extremely difficult. It noted that in the annual sales rankings of global semiconductor equipment manufacturers, companies from Japan, the U.S., and Europe almost exclusively dominate the top positions.

Furthermore, it pointed out that China alone possesses the potential to counter the joint blockade by Japan, the U.S., and Europe by developing and procuring all equipment for every manufacturing process domestically. It conveyed the reality that Chinese companies are achieving rapid growth, with Naura Technology Group, a major Chinese semiconductor equipment manufacturer, entering the global top 5 in sales for the first time last year, thereby breaking the stronghold of Japan, the U.S., and Europe, and AMEC (Advanced Micro-Fabrication Equipment Inc.) entering the top 20, among other examples. (Editor/Translator: Kawajiri)