The government has earmarked $140 billion that could include subsidising the purchase of domestically produced chipmaking equipment, Reuters reported in December, likely benefiting manufacturers such as China's sole semiconductor lithography specialist, Shanghai Micro Electronics Equipment Group (SMEE).
Just as in the aviation industry, chipmaking equipment manufacturers work closely with clients, offering long-term services including installation, calibration, maintenance and repair of machines that can cost over $100 million each.
Another former top staffer at a Chinese chipmaking equipment manufacturer recounted how while working to master the etching procedure for 3D NAND Flash, the company could not perfect a critical element, namely the channel hole, or hole size.
The situation could be worsened for Chinese companies should Japan and the Netherlands agree with the United States to also restrict exports of chipmaking equipment to China.
"When the sanctions came out, all the American companies followed," an engineer at a Chinese memory chipmaker told Reuters.