China Dominates Global Semiconductor Market with $12 Billion Investment, Boosting Worldwide Income Amid Major Market Contraction

Technology Battle: China purchases chip-manufacturing machinery valued at $12 billion in Q2

The skyrocketing need in China contributed to a global revenue increase of 4% from semiconductor equipment, in spite of a decrease in key markets.

In the second quarter, China continued to be the world's biggest and quickest expanding market for semiconductor manufacturing machinery, says SEMI, a global association for the chip industry. This growth comes as the nation strives for technological independence in the face of US sanctions.

During the second quarter of the year, China experienced a significant increase in the sales of semiconductor equipment, such as tools for wafer processing and assembly, packaging, and testing. The sales surged by 62% compared to the same period last year, exceeding US$12 billion.

The increasing need for semiconductor equipment in China has boosted the global revenue from this sector by 4% to $26.8 billion, even amidst declining sales in key regions like South Korea, Taiwan, and North America. Japan, which holds the fifth position in market size, noted a 6% increase in earnings, amounting to $1.6 billion.

The semiconductor equipment industry is experiencing a resurgence, fueled by strategic funding aimed at sustaining the robust demand for cutting-edge technology and regions aiming to strengthen their chip-manufacturing infrastructure," stated Ajit Manocha, the CEO and President of SEMI.