China Leads Global Chip-making Equipment Market with US$12 Billion in Q2
- tech360.tv
- Sep 6, 2024
- 2 min read
China leads the global chip-making equipment market, with sales exceeding US$12 billion in Q2. Despite contractions in major markets, global semiconductor equipment revenue increased by 4% to US$26.8 billion. SEMI forecasts a 3.4% increase in global sales in 2024, with a historical high of US$109 billion.
This surge occurs as China strives for technological independence amidst US sanctions.
In the second quarter of this year, China experienced a remarkable 62% year-on-year increase in chip-making equipment sales, surpassing $12 billion. This expansion was fuelled primarily by tools for wafer processing, assembly, packaging, and testing.
Despite declining sales in major markets such as South Korea, Taiwan, and North America, global revenue from semiconductor equipment increased by 4% to US$26.8 billion, with Japan seeing a 6% increase to US$1.6 billion.
SEMI's CEO and president, Ajit Manocha, attributed the market's resurgence to strategic investments supporting demand for advanced technologies and regions improving their chip-making ecosystems.
The positive momentum is expected to continue this year and next, with SEMI forecasting a 3.4% increase in global sales in 2024, reaching a record high of US$109 billion. As a result, a strong 17% growth rate is expected by 2025.
Looking ahead, SEMI expects China to maintain its lead until 2025, despite a potential decline in sales due to significant investments made in recent years, according to a July report from the group.
China's growing demand for chip-making equipment, driven by a desire to reduce reliance on foreign supplies, comes against the backdrop of rising tensions between the US and China, which may stymie Chinese technological progress.
Since 2018, the United States has restricted the export of chip-lithography equipment from the Dutch company ASML to China. Earlier this year, the Netherlands revoked an export licence that allowed ASML to ship advanced tools to China, which are critical for 7-nanometer and 5-nm production.
Under pressure from the United States, the Dutch government is considering further restrictions on ASML's ability to service and maintain advanced wafer fab equipment already operational in China, Bloomberg reported last month.
Despite these challenges, mainland China continues to be ASML's largest market, accounting for nearly half of the company's net system sales of €4.8 billion (US$5.3 billion) in Q2.
China leads global chip-making equipment market with over US$12 billion in sales in Q2.
Global semiconductor equipment revenue rises by 4% to US$26.8 billion despite contractions in major markets.
SEMI projects a 3.4% increase in global sales for 2024, reaching a historical high of US$109 billion.
Source: SCMP
