The global semiconductor industry is witnessing a transformative shift, with artificial intelligence (AI) emerging as the primary catalyst for growth. As AI-related demand is anticipated to further skyrocket by 2025, spending on semiconductor equipment is set for another significant uptick. Amidst increasing US sanctions, China is positioning itself to leverage the AI surge as a potential strategy for a comeback, attracting worldwide scrutiny of its forthcoming moves.
China is forecasted to command nearly 40% of global semiconductor equipment orders, underscoring its pivotal role in the industry’s demand. The spotlight is firmly on whether Chinese companies can harness the momentum of AI and successfully navigate international restrictions during SEMICON China 2025, scheduled to commence on March 26 in Shanghai.
Amidst this backdrop, several major international players are opting out of the event. Notably, U.S.-based Applied Materials and Dutch lithography leader ASML will be absent from the exhibition. Applied Materials will only participate in affiliated forums and the CSTIC conference, while ASML continues its long-standing absence from the show floor.
Taking advantage of this gap, Chinese homegrown equipment manufacturers such as Naura Technology, Advanced Micro-Fabrication Equipment (AMEC), and Acm Research (Shanghai), Inc. are gaining traction, both within China’s domestic market and globally.
These leading Chinese equipment manufacturers are showcasing impressive financial growth. Naura forecasts revenue between CNY27.6 billion (US$3.81 billion) and CNY31.78 billion for 2024, marking a substantial year-over-year increase of 25% to 43.93%. Meanwhile, Acm Research (Shanghai) projects its revenue for 2024 at CNY5.618 billion—an annual rise of 44.48%. The company’s core cleaning equipment segment alone is expected to contribute CNY4.057 billion, marking a 55.18% gain.
Hangzhou Changchuan Technology (CCTech), specializing in IC testing equipment, anticipates its 2024 net profit to soar between CNY400 million and CNY500 million, driven by significantly expanded overseas shipments, marking a striking growth of 785.75% to 1,007.18%.
The AI wave is lifting the entire industry, with projections for global chip sales exceeding US$700 billion by 2025 and equipment investment expected to reach US$112.8 billion. Chinese suppliers are well-positioned to capitalize on this growth trend as AI adoption accelerates.
China continues to lead as the world’s largest market for semiconductor equipment. A surge in demand for chips and manufacturing tools is being fueled by the nation’s booming AI sector, spearheaded by startups like DeepSeek.
Global semiconductor equipment sales are projected to hit US$109 billion in 2024, up 18.7% from 2023, and are expected to maintain momentum into 2025, with sales reaching US$128 billion—a further 18% increase. It’s anticipated that China will account for nearly 40% of this global demand.
China’s expansion in domestic chip production, particularly in mature-node processes, is a key factor driving the investment in equipment and technology upgrades. As geopolitical challenges intersect with the surge in AI, SEMICON China 2025 will be a crucial test for China’s indigenous semiconductor equipment manufacturers to turn their aspirations into reality.
