SEMI: The chip equipment market in Chinese Mainland will shrink to less than US $40 billion in 2025
The chip manufacturing equipment market in Chinese Mainland will shrink next year, because Chinese Mainland has snapped up in advance when the tension between China and the United States intensifies.
According to SEMI, an international chip industry organization, the expenditure on chip manufacturing equipment in Chinese Mainland will exceed 40 billion dollars for the first time in 2024.
However, SEMI said at a meeting in September that the expenditure on chip equipment in Chinese Mainland would not reach US $40 billion in 2025, falling back to the level in 2023.
An executive from the Chinese Mainland branch of an international chip manufacturing equipment supplier said: "In 2025, the Chinese Mainland market is expected to decline by 5% to 10% compared with the previous year." The executive added: "The utilization rate of equipment delivered to semiconductor factories in Chinese Mainland is declining, and the previous panic buying will lead to a shrinking market in 2025."
In the sales of ASML, a Dutch chip manufacturing equipment supplier, from July to September, the Chinese Mainland market accounted for about 50%. However, ASML predicted that by 2025, the market share of Chinese Mainland would drop to about 20%, so the company lowered its revenue forecast for the year.
The market contraction is not limited to 2025. According to SEMI data, based on the compound annual growth rate, the expenditure on chip manufacturing equipment in Chinese Mainland will decline by 4% on average from 2023 to 2027. In contrast, spending in the Americas will increase by 22% annually in recent years, while in Europe and the Middle East it will increase by 19% and in Japan it will increase by 18%.
However, Chinese Mainland is still the world's largest market for chip manufacturing equipment. It is estimated that between 2024 and 2027, Chinese Mainland will spend US $144.4 billion on semiconductor factory equipment. This expenditure was higher than South Korea's 108 billion US dollars, Taiwan, China's 103.2 billion US dollars, the Americas' 77.5 billion US dollars and Japan's 45.1 billion US dollars.
Chinese Mainland seeks to continue to support the semiconductor industry to improve its self-sufficiency rate. The main foreign suppliers who hope to take advantage of this huge market are facing fierce competition from local enterprises.
However, SEMI said at a meeting in September that the expenditure on chip equipment in Chinese Mainland would not reach US $40 billion in 2025, falling back to the level in 2023.
An executive from the Chinese Mainland branch of an international chip manufacturing equipment supplier said: "In 2025, the Chinese Mainland market is expected to decline by 5% to 10% compared with the previous year." The executive added: "The utilization rate of equipment delivered to semiconductor factories in Chinese Mainland is declining, and the previous panic buying will lead to a shrinking market in 2025."
In the sales of ASML, a Dutch chip manufacturing equipment supplier, from July to September, the Chinese Mainland market accounted for about 50%. However, ASML predicted that by 2025, the market share of Chinese Mainland would drop to about 20%, so the company lowered its revenue forecast for the year.
The market contraction is not limited to 2025. According to SEMI data, based on the compound annual growth rate, the expenditure on chip manufacturing equipment in Chinese Mainland will decline by 4% on average from 2023 to 2027. In contrast, spending in the Americas will increase by 22% annually in recent years, while in Europe and the Middle East it will increase by 19% and in Japan it will increase by 18%.
However, Chinese Mainland is still the world's largest market for chip manufacturing equipment. It is estimated that between 2024 and 2027, Chinese Mainland will spend US $144.4 billion on semiconductor factory equipment. This expenditure was higher than South Korea's 108 billion US dollars, Taiwan, China's 103.2 billion US dollars, the Americas' 77.5 billion US dollars and Japan's 45.1 billion US dollars.
Chinese Mainland seeks to continue to support the semiconductor industry to improve its self-sufficiency rate. The main foreign suppliers who hope to take advantage of this huge market are facing fierce competition from local enterprises.