According to new Nikkei reporting, China has become the leading spender on chipmaking equipment, amassing $25 billion in investments during the first six months of 2024.
Moreover, the spend is expected to continue at the same rate, with the country likely to hit $50 billion on semiconductor equipment by the end of this year.
So far this year, China has spent more than South Korea, Taiwan and the US combined, highlighting the country’s major buying power and its commitment to bolstering the sector amid US and EU-imposed export tariffs.
China is spending big on chipmaking equipment
Clark Tseng, SEMI's senior director of market intelligence, summarized: "Concerns over potential further [export control] restrictions also pushed them to pull in and secure more equipment they could buy in advance.”
Beyond the four walls of China, global chip industry association SEMI (cited in Nikkei’s article) noted that the likes of Japan along with countries in Southeast Asia, America and Europe are all likely to increase spending in the sector by 2027, fuelled by the trend of localizing production in order to circumvent restrictions and tariffs as well as reduce reliance on other nations, which could pose a security issue.
In comparison, South Korea, Taiwan and the US have all decreased spending in the sector year-over-year thanks to tough economic conditions.
Looking ahead, this year’s 20% market growth is expected to continue, with a further 20% growth predicted by 2025. While artificial intelligence has undoubtedly fuelled chip sales, future developments around software-defined vehicles and other smart technologies will continue to push the market in an upward trajectory.
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