China imported 9% more semiconductor equipment in July year-over-year, driven by accelerating spending on logic chip fabrication.

China’s semiconductor equipment imports rose 9% year-over-year in July, according to a Barclays report, marking a sharp acceleration from June’s 4% growth and signaling a decisive reversal from the slump that defined the first half of the year. The rebound follows a challenging start to 2026, when Q1 imports cratered by 16% and Q2 posted a modest 1% overall decline.

The recovery was primarily driven by logic-chip equipment and back-end assembly tools, with Shanghai emerging as a central hub for the uptick. Within these categories, assembly and back-end equipment stood out as the strongest performer, surging 35% in July after a 43% increase in June. Wire bonders alone recorded a remarkable 61% jump.

Other major equipment segments also showed marked improvement. Lithography equipment imports climbed 7%, up from a 3% gain in June. Chemical vapor deposition (CVD) equipment surged 15%, a dramatic turnaround from the 16% decline recorded in the prior period. Etching equipment continued to contract but at a significantly slower pace, falling just 6% compared to June’s 24% plunge.

Barclays noted that this purchasing pattern aligns with recent commentary from ASML, which highlighted rising logic chip demand from Chinese customers during its second-quarter earnings remarks. Meanwhile, memory-related spending remains subdued, though Barclays anticipates a pickup in memory capital expenditure during the second half of 2026. Looking ahead, the bank projects full-year 2026 wafer fabrication equipment imports will grow by 10%, with a more bullish forecast of 15% growth for 2027.