China seen leading in chipmaking investment again in 2025, SEMI group says

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Reuters

Wed, Mar 26, 2025, 3:41 AM 2 min read

AMSTERDAM (Reuters) - China volition proceed to put much successful caller machine chipmaking instrumentality than immoderate different geographical portion successful 2025, contempt a important year-over-year decline, manufacture radical SEMI said successful a study connected Wednesday, followed by Taiwan and Korea.

In its fabrication works spending forecast, SEMI said planetary investments successful cogwheel volition emergence 2% this twelvemonth to $110 billion, the sixth consecutive twelvemonth successful a enactment of growth, owed to concern successful tools needed to marque chips for artificial intelligence.

The interaction of AI volition apt beryllium adjacent stronger successful 2026, SEMI added, erstwhile concern is expected to turn by different 18%.

China is the largest user of chips and firms determination person been expanding chipmaking capableness for years, but they began a immense sprint successful mid-2023 and 2024 with authorities support, arsenic portion of a thrust to lessen dependence connected imported chips and successful effect to restrictions imposed by the U.S. government.

ASML, the largest spot instrumentality manufacturer, forecasts 2025 income of $32-38 cardinal euros, implying marketplace stock of much than 25% for its sub-sector, lithography, wherever it enjoys a ascendant position.

Other apical instrumentality firms see Applied Materials (AMAT), KLA, LAM Research (LRCX) and Tokyo Electron (TOELF), though Chinese instrumentality makers specified arsenic Naura, AMEC and Huawei affiliate SiCarrier are increasing fast.

Chinese spending is expected to autumn to $38 cardinal successful 2025, down 24% from $50 cardinal successful 2024, but inactive up of $21.5 cardinal successful Korea, wherever SK Hynix and Samsung Electronics are expanding capableness for representation chips.

Spending successful Taiwan, wherever starring foundry TSMC manufactures AI chips for Nvidia and others, is projected astatine $21 billion.

Among different regions, the Americas and Japan are each expected to walk $14 cardinal successful 2025, portion Europe volition walk $9 billion, SEMI said.

(Reporting by Toby Sterling; Editing by Kim Coghill)