China’s purchases of chipmaking equipment are projected to decline to $38 billion in 2025, down from $41 billion due to overcapacity and U.S. sanctions. This marks the first decline since 2021. Despite challenges, Chinese firms are adapting and expanding their production capabilities.
According to a recent report from the Canadian semiconductor research firm TechInsights, China’s expenditures on chipmaking equipment are anticipated to decrease in 2025 following three consecutive years of growth. The predicted decline is attributed to overcapacity in the industry and heightened restrictions imposed by U.S. sanctions. This year, it is projected that Chinese spending on such equipment will drop to $38 billion, marking a 6% reduction from the previous year.
In summary, China’s chipmaking equipment purchases are expected to decrease in 2025 due to market overcapacity and U.S. sanctions. Previously, China was a major driver for global sales, but this trend appears to be reversing. The country continues to face challenges in achieving self-sufficiency in crucial areas of chip production, particularly lithography systems.
Original Source: money.usnews.com
