TechInsights: China's chip equipment procurement is expected to drop to US$38 billion in 2025, a year-on-year decrease of 6%

TechInsights: China's chip equipment procurement is expected to drop to US$38 billion in 2025, a year-on-year decrease of 6%

China's purchases of chipmaking equipment will fall this year after three years of growth as the industry grapples with overcapacity and faces greater restrictions from U.S. sanctions, according to market research firm TechInsights.

“For at least the past two years, China has been the largest buyer of wafer manufacturing equipment, purchasing $41 billion worth of tools, accounting for 40% of global sales in 2024,” said Boris Metodiev, senior semiconductor manufacturing analyst at TechInsights, in an online seminar. “But this year, China’s spending is expected to fall to $38 billion, a 6% year-on-year decrease, and its share of global procurement will fall 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 Semiconductor Industry Association (SEMI) predicted that with the continued popularization of artificial intelligence and driven by investment in the production of mature technologies, the global semiconductor equipment market will continue to maintain strong growth. From 2025 to 2027, global 300mm wafer fab equipment spending is expected to reach a record US$400 billion.

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