Asia Express - East Asian ICT
Localization of Semiconductor Equipment in China Reaches Over 40%
October 02, 2023

China has made significant investments in building its own semiconductor supply chain, aiming to achieve a 70% self-sufficiency rate by 2025, according to a report from South Korean media outlet "Ddaily." The report highlights China's substantial progress in recent years, with the localization of semiconductor equipment now surpassing 40%, a significant increase from 21% two years ago. Notably, this rate has exceeded 50% in specialized areas like PVD (Physical Vapor Deposition) and oxidation.

Several Chinese companies, including SMIC and Naura Technology, have allocated more than 13% and 11% of their respective revenues to research and development of semiconductors over the past two and a half years. However, the production of lithography tools remains a challenge for Chinese enterprises, as they continue to heavily rely on equipment from Japan and the Netherlands, such as ASML, Canon, and Nikon.

Following an anticipated period of restrained growth in 2023, the global semiconductor market is projected to reach a value of US$576 billion in 2024, marking an 11.8% year-on-year increase, as reported by the MIC (Market Intelligence & Consulting Institute). Established in 1987, MIC operates under the III (Institute for Information Industry), a distinguished government think tank and one of the leading IT research institutes in the Asia Pacific region.