Woofun AI notes that China's etching equipment indigenization is accelerating, outpacing deposition sector progress. Front-end etching imports declined 18% year-on-year, contrasting with a 3% rise in deposition imports, indicating substantial domestic substitution.

Applied Materials and Tokyo Electron reported 16% and 18% year-on-year revenue drops in China for fiscal years 2025 and 2026, respectively. AMEC drives this shift, holding the top ICP etching market share at ChangXin Storage, with expectations of further revenue growth as production expands.