Chinese companies are expected to significantly reduce investments in new chip manufacturing machinery in 2025, but will maintain their leading position globally and greatly surpass competition from Taiwan and South Korea, estimates the electronics manufacturers association SEMI.
Global investments in chip manufacturing equipment are projected to increase by two percent this year, reaching $110 billion, according to SEMI.
This means that their value will have increased for the sixth consecutive year, but at a noticeably slower pace than in 2024, when it rose by five percent.
In 2026, artificial intelligence is expected to drive an investment surge of as much as 18 percent, according to the association.
China is the largest consumer of chips, and its companies have been striving to increase production capacities for years to keep pace with demand, with an accelerated investment pace particularly since mid-2023 and into 2024. Beijing has provided support, aiming to reduce dependence on chip imports amid U.S. trade restrictions.
Japan and Taiwan Closing In
The world’s largest chip machinery manufacturer, Dutch ASML expects revenue this year to range from $32 billion to $38 billion, which would secure it a 25 percent share of the lithography systems market.
