China to Lead Global Chipmaking Investments in 2025 Despite Decline
China will remain the top investor in chipmaking equipment in 2025, even as its spending drops significantly from the previous year, according to a report by SEMI, an industry group. Despite a 24% decline, China’s projected $38 billion investment will still surpass spending in Taiwan and South Korea.
Global Chipmaking Investments on the Rise
SEMI forecasts a 2% increase in global semiconductor equipment spending in 2025, reaching $110 billion. This marks the sixth consecutive year of growth, driven by AI chip production. The impact of artificial intelligence on the semiconductor sector is expected to grow further in 2026, with investment projected to rise by 18%.
China has long been the world’s largest consumer of chips. However, in response to US restrictions, Chinese firms ramped up chip production in 2023 and 2024, with strong government backing. The country is pushing to reduce reliance on imported chips by expanding domestic manufacturing capacity.
Regional Investment Trends in 2025
While China leads in spending, other key regions are also investing in semiconductor manufacturing:
South Korea: $21.5 billion, with Samsung Electronics and SK Hynix expanding memory chip production.
Taiwan: $21 billion, where TSMC continues manufacturing AI chips for Nvidia and other tech giants.
Americas & Japan: $14 billion each, reflecting growing investment in semiconductor self-sufficiency.
Europe: $9 billion, maintaining steady spending on chip production.
China Leading Chip Equipment Manufacturers
The semiconductor equipment industry is dominated by ASML, the world’s largest chip equipment maker, which forecasts 2025 sales of €32-38 billion. The company holds a dominant position in lithography, a crucial process in chip manufacturing.
Other major equipment providers include:
Applied Materials (AMAT.O)
KLA (KLAC.O)
Lam Research
Tokyo Electron (8035.T)
Meanwhile, Chinese firms like Naura (002371.SZ), AMEC (68812.SS), and Huawei affiliate SiCarrier are rapidly expanding their presence in the chip equipment sector.
The Future of AI-Driven Chip Investment
AI-driven demand is reshaping semiconductor manufacturing, with global investments expected to surge further in 2026. While China’s chip spending will decline, its strategic focus on domestic production and supply chain independence ensures it will remain a dominant force in the industry.
With inputs from Reuters