China Anticipated to Reaffirm Chipmaking Investment Leadership by 2025

According to SEMI Group, China will lead global investments in chipmaking equipment in 2025, followed by Taiwan and Korea. Despite a projected decline, China’s investment remains significant at $38 billion. The growing demand for AI chips drives global investment, expected to reach $110 billion this year, with notable increases anticipated in 2026.

In 2025, China is projected to lead the world in investments in computer chipmaking equipment, according to a report by SEMI Group. Despite a year-over-year decline, China’s expenditure will outpace that of Taiwan and Korea. The report highlights that global investment in chipmaking tools is expected to increase by 2%, reaching $110 billion, largely driven by the demand for chips used in artificial intelligence.
SEMI anticipates that the impact of AI will become even more pronounced in 2026, forecasting an 18% rise in investment during that year. While China has been the largest consumer of chips, firms have accelerated their chipmaking efforts since mid-2023, motivated by governmental backing and a desire to reduce reliance on imported chips amid U.S. restrictions.
ASML, the leading manufacturer of chip equipment, projects sales of 32 to 38 billion euros in 2025, indicating a market share exceeding 25% in lithography. Other significant players in the equipment sector include Applied Materials and KLA, although Chinese manufacturers like Naura and AMEC are gaining momentum.
China’s spending is anticipated to decrease to $38 billion in 2025, reflecting a 24% decline from $50 billion in 2024, but still surpassing Korea, projected at $21.5 billion, where companies like SK Hynix and Samsung aim to boost memory chip production. Meanwhile, Taiwan’s investment, spearheaded by TSMC’s AI chip production, is estimated at $21 billion. The Americas and Japan are each set to invest $14 billion, with Europe at $9 billion, according to SEMI Group.

In conclusion, SEMI Group’s analysis indicates that China will continue to be a dominant force in chipmaking investments, even amid a decline. The global trend toward AI-driven chip manufacturing is expected to contribute to sustained growth in the coming years. Other regions like Taiwan and Korea also show significant contributions, highlighting the competitive landscape in the semiconductor industry.

Original Source: money.usnews.com