China Leads Global Chipmaking Investment in 2025 Despite Decline, SEMI Report Shows

China is set to continue its dominance in global chipmaking investment in 2025, despite experiencing a notable decline compared to previous years, according to a report from industry group SEMI. The report forecasts that global spending on semiconductor fabrication equipment will rise 2% in 2025, reaching $110 billion, marking the sixth consecutive year of growth driven by increasing demand for chips, particularly in the field of artificial intelligence (AI). This growth trend is expected to continue into 2026, with a projected 18% increase in investment.

While China’s investment will fall by 24%, from $50 billion in 2024 to $38 billion in 2025, it remains the leader in chipmaking investment. Following China, Taiwan and South Korea are expected to be the next largest investors, with Korea’s spending estimated at $21.5 billion, driven by expansions from companies like SK Hynix and Samsung Electronics. Taiwan, home to major player TSMC, will see investments of around $21 billion, supported by growing demand for AI chips.

China’s chipmaking capacity has been rapidly growing since mid-2023, fueled by strong government support and a desire to reduce dependence on imported chips amid tightening U.S. restrictions. Notable Chinese equipment manufacturers such as Naura, AMEC, and SiCarrier (a Huawei affiliate) are playing a significant role in the country’s chipmaking expansion. In contrast, global players like ASML, Applied Materials, and KLA are expected to maintain significant market shares.

In comparison to China, other regions like the Americas and Japan are projected to invest $14 billion each in 2025, while Europe’s spending will remain lower at $9 billion. Despite the decline in China’s investments, its continued leadership in global chipmaking spending signals its strong position in the semiconductor industry, driven by the country’s strategic investments and expanding capabilities.

source: reuters