U.S. export controls on China hurt domestic companies, and well-known semiconductor suppliers have been "significantly affected"

On January 30, Beijing time, a spokesperson for Teradyne, a well-known U.S. semiconductor automatic test equipment supplier, said on Monday that the company withdrew approximately US$1 billion worth of manufacturing operations from China last year after U.S. export controls caused supply chain disruptions. Teradyne warned investors in its 2022 annual report that the semiconductor export controls to China introduced by the United States in October of that year may affect the company.

In October 2023, the United States tightened export controls again.Teradyne said at the time that the restrictions affected both Teradyne's sales to certain companies in China and its manufacturing and development operations.The Suzhou factory is Teradyne's main production base for semiconductor test equipment.

On Friday, Teradyne's global head of compliance and ethics, Brian Amero, spoke at an online export conference about the company's decision to pull manufacturing out of China. Armero said at the Massachusetts Export Center’s annual Export Expo:"We produce in China, so we had to get emergency authorization to continue production. We decided it was too risky, so we moved manufacturing out of China, at a significant cost."

He said that while Teradyne was not a "direct target" of these export control regulations, the company was "significantly impacted by these regulations. We see that in our market share." Armero did not provide specific market share changes.But in the three months ended October 1 last year, the Chinese market accounted for 12% of Teradyne's revenue, down from 16% in the same period last year.