Founder and Chairman of Advanced Micro-Fabrication Equipment Inc. (AMEC), Yin Zhiyao (Image Source: CNR)

TMTPOST— Yin Zhiyao, the founder and CEO of Advanced Micro-Fabrication Equipment Inc. (AMEC), has renounced his U.S. citizenship and reclaimed Chinese nationality, according to the company's 2024 annual report released Friday.

Yin, a veteran of Silicon Valley and one of China's most influential semiconductor executives, founded AMEC in 2004 after holding senior R&D roles at Lam Research and Applied Materials. The Shanghai-listed company (SHA: 688012) is a leading supplier of etching and deposition tools in China's push for chipmaking self-sufficiency.

The company did not disclose the reason behind Yin's citizenship change, but the move comes against the backdrop of U.S. export controls restricting "U.S. persons" from supporting China's advanced semiconductor manufacturing capabilities without a license.

Yin had been listed as a U.S. citizen in AMEC's 2022 annual report. In 2023, his nationality was omitted. Now, the 2024 filing confirms he is once again a Chinese national.

The U.S. Commerce Department introduced sweeping export controls on October 7, 2022, targeting China's chip sector. One key clause prohibits U.S. persons—including citizens and green card holders—from engaging in certain activities related to the development or production of semiconductor equipment in China without prior authorization.

AMEC has already been impacted. In August 2023, the company announced that three key R&D personnel with U.S. citizenship would step back from core technical roles. A month later, two more senior engineers resigned from technical leadership positions, though they remained employed at the company.

At the time, AMEC said these changes would not "significantly impact" its operations or innovation pipeline.

AMEC posted robust top-line growth in 2024. Revenue rose 44.7% year over year to 9.07 billion yuan ($1.25 billion), with etching equipment accounting for over 7.2 billion yuan—up 54.7%—reinforcing its leadership in the domestic market.

However, net profit declined 9.5% to 1.62 billion yuan, driven by a 94.3% surge in R&D spending, which reached 2.45 billion yuan. Excluding non-recurring items, adjusted net income rose 16.5% to 1.39 billion yuan, underscoring the company's aggressive investment in next-gen equipment.

"We've shortened the development cycle of new tools from 3–5 years to under 2 years," the company said, adding that its latest products are already in commercial use.

Separately, AMEC announced a fresh capital injection into its subsidiary, Ultra Micro Semiconductor Equipment (Shanghai) Co., Ltd., which focuses on electron beam inspection tools—a key area in which China seeks to close the gap with global leaders like KLA and Applied Materials.

The capital raise boosts Ultra Micro's registered capital to 160 million yuan. Contributors include Zhongwei Company (50 million yuan), Yin Zhiyao himself (10 million yuan), and new individual investors. This marks the second capital increase led by Yin's team in under six months.

The company expects domestic self-sufficiency for key components to surpass 90% and reach full coverage by Q3 2024.

Yin remains bullish on China's semiconductor ambitions despite geopolitical headwinds.

"There are no insurmountable technical barriers," Yin said. "With determination and persistence, I believe we can reach the global frontier in five to ten years."

His renunciation of U.S. citizenship may symbolize more than just compliance—it reflects a broader recalibration as China's top tech leaders double down on domestic innovation in the face of rising barriers abroad.

(Note: 1 USD equals about 7.25 yuan)