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China's chip manufacturing equipment procurement to decline in 2025

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February 14, 2025

February 14, 2025 /SemiMedia/ — Market research firm TechInsights expects China's procurement of semiconductor manufacturing equipment to decline in 2025, following three years of growth. The decrease is attributed to excess capacity and tightening U.S. export controls.

Boris Metodiev, Senior Semiconductor Manufacturing Analyst at TechInsights, said in an online seminar, "For the past two years, China has been the largest buyer of wafer fab equipment, purchasing $41 billion worth of tools, accounting for 40% of global sales in 2024. However, this year, China's spending is projected to fall to $38 billion, a 6% year-on-year decline, reducing its share of global procurement to 20%, marking the first decline since 2021. This slowdown is primarily due to export controls and excess capacity."

Earlier, the Semiconductor Equipment and Materials International (SEMI) forecasted that global semiconductor equipment market growth would remain strong, driven by the rise of artificial intelligence and investments in mature technology production. From 2025 to 2027, global spending on 300mm wafer fab equipment is expected to reach a record $400 billion.

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300mm wafer fab equipment AI semiconductor demand China chip manufacturing equipment Global semiconductor equipment market semiconductor market 2025 semiconductor procurement Techinsights U.S. export controls wafer fab equipment
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