Institution: China's chip manufacturing equipment procurement volume will decrease by 2025
Feb 12,2025
On February 12th, market research firm TechInsights stated that after three years of growth, China's procurement of chip manufacturing equipment will decline this year as the industry struggles to cope with overcapacity and faces greater restrictions from US sanctions.
Boris Metodiev, Senior Semiconductor Manufacturing Analyst at TechInsights, said in an online seminar, "For at least the past two years, China has been the largest buyer of wafer manufacturing equipment, purchasing tools worth $41 billion, accounting for 40% of global sales in 2024. However, this year, China's spending is expected to drop to $38 billion, a 6% year-on-year decrease, and its share in global procurement will drop to 20%, the first decline since 2021. Due to export controls and overcapacity, we can see a slowdown in China's chip manufacturing spending
Previously, the International Semiconductor Industry Association (SEMI) predicted that with the continued popularity of artificial intelligence and investment driven by mature technology production, the global semiconductor equipment market will continue to maintain strong growth. From 2025 to 2027, the global 300mm wafer fab equipment expenditure is expected to reach a record high of $400 billion.
Boris Metodiev, Senior Semiconductor Manufacturing Analyst at TechInsights, said in an online seminar, "For at least the past two years, China has been the largest buyer of wafer manufacturing equipment, purchasing tools worth $41 billion, accounting for 40% of global sales in 2024. However, this year, China's spending is expected to drop to $38 billion, a 6% year-on-year decrease, and its share in global procurement will drop to 20%, the first decline since 2021. Due to export controls and overcapacity, we can see a slowdown in China's chip manufacturing spending
Previously, the International Semiconductor Industry Association (SEMI) predicted that with the continued popularity of artificial intelligence and investment driven by mature technology production, the global semiconductor equipment market will continue to maintain strong growth. From 2025 to 2027, the global 300mm wafer fab equipment expenditure is expected to reach a record high of $400 billion.