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Finance

China to Be Top Buyer of Chip Tools Despite Steep Cut in Spending

By Asia Tech Times
Last updated: 26/03/2025
5 Min Read
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Industry group Semi said in a report that although China will become the world’s largest buyer of chip manufacturing equipment this year.

Beijing will spend about $38 billion on chip tools, the highest in the world, but a 24% drop from the $50 billion spent last year.

China’s estimated spending will account for one-third of the global investment in global chip tools, i.e. Half report said.

AI experts say

Since last year, analysts have been warning China about slowing consumption on chip devices. Last month, Canadian semiconductor research firm TechInsights explain The slowdown will be caused by “export control and overcapacity.”

China was the global growth driver for the global wafer manufacturing equipment industry in 2023 and 2024, when the vast market declined due to demand for consumer electronics.

Many of China’s purchases are driven by inventory as the U.S. imposes a series of sanctions to enable Stymie Beijing to acquire and produce chips that could help promote artificial intelligence for military applications or otherwise threaten U.S. national security.

The slowdown in China’s overall equipment spending is also a time when actively working to build a self-sufficiency chip supply chain and has multibillion-dollar state support.

Chinese chip companies Despite multiple progress in Washington’s base, China’s largest chipmaker Smic and the United States approved Huawei to produce premium chips last year through more expensive and laborious efforts.

Meanwhile, Beijing’s biggest weakness remains lithography systems, as well as testing and assembly tools.

But earlier this month, market research firm Trendforce Report That Smic and Huawei also developed the country’s first local extreme ultraviolet (EUV) lithography machine ever.

EUV machines are considered to be the most advanced chip manufacturing tool at present, with ASML in Europe being its main supplier. However, ASML has never sold its EUV machines in China due to export controls.

SMIC and Huawei’s EUV machines are scheduled to be tested in the third quarter of 2025. The goal of these companies is to start mass production next year.

Other leading Chinese equipment manufacturers, including Naura Technology and AMEC, are also expanding their footprint worldwide. In terms of sales, Naura is now the seventh largest equipment manufacturer in the world.

Top buyers in other Asian countries

The semi-report also pointed out that South Korea is expected to be the second highest stock among chip tools by 2026.

South Korean investment is expected to grow 29% in 2025 to $21.5 billion and 26% in 2026 to $27 billion.

The key driver of South Korea’s spending on chip tools is the growing penetration of artificial intelligence, which has led to a surge in memory adoption. Semi noted that the country’s largest Chipmakers SK Hynix and Samsung Electronics plan to invest more equipment in expansion and technology upgrades.

Taiwan’s spending is expected to be NVIDIA and others’ AI chips, with an estimated $21 billion.

Other regions, the Americas and Japan will each spend $14 billion in 2025, while Europe will spend $9 billion, Semi said.

  • Reuters, other editors and inputs with Vishakha Saxena

Please read also:

Chinese Science and U.S. Export Control

In a roadside conversation between Trump

Taiwan, North Korea is on the brink, Trump will raise funds

China’s chip production skills 10-15 years behind the West: ASML CEO

As TSMC starts producing 4NM chips in the United States, China smoke

TSMC can cut off all Chinese AI customers from its advanced chips

China hits U.S. ban, stops exporting key chip materials

Chinese Racing Buys Key Chip Materials from U.S. Suppliers

China’s Huawei, Smic “strengthen production” of the latest AI chips

Chinese industry agencies claim that U.S. chips are “unsafe”

Huawei, SMIC will use 5nm chips to defy US sanctions: ft

Raymondo said

China threatens to cut off new U.S. chip rout

Vishakha Saxena

Vishakha Saxena is a multimedia and social media editor for Asian finance. She has been a digital journalist since 2013 and is an experienced writer and multimedia producer. As a businessman and investor, she is very interested in the intersection of new economy, emerging markets, and finance and society. You can write to her [email protected]

Contents
AI experts sayTop buyers in other Asian countriesPlease read also:Chinese Science and U.S. Export ControlIn a roadside conversation between TrumpTaiwan, North Korea is on the brink, Trump will raise fundsChina’s chip production skills 10-15 years behind the West: ASML CEOAs TSMC starts producing 4NM chips in the United States, China smokeTSMC can cut off all Chinese AI customers from its advanced chipsChina hits U.S. ban, stops exporting key chip materialsChinese Racing Buys Key Chip Materials from U.S. SuppliersChina’s Huawei, Smic “strengthen production” of the latest AI chipsChinese industry agencies claim that U.S. chips are “unsafe”Huawei, SMIC will use 5nm chips to defy US sanctions: ftRaymondo saidChina threatens to cut off new U.S. chip routVishakha SaxenaLeave a Comment
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