China Leads Chipmaking Investments Amid AI Boom

Despite a projected decline, China will invest more in chipmaking equipment than any other region by 2025, according to SEMI. Global investments in chip fabrication are driven by AI, with significant contributions from firms in Taiwan, Korea, and the Americas. China aims to reduce dependence on imported chips.

China is poised to outpace all other regions in computer chipmaking equipment investments by 2025, even amidst a predicted decline, according to a report by industry group SEMI. Taiwan and Korea follow closely in this competitive landscape.

SEMI's forecast portrays a global escalation in fabrication plant spending, with a 2% rise to $110 billion this year, marking six years of consistent growth due to the burgeoning demand for chip-making tools driven by artificial intelligence advancements.

China, the largest chip consumer, is intensifying its chipmaking capacity, spurred by governmental incentives and stepping away from relying on imported chips. Meanwhile, companies like ASML, by dominating the lithography market, project substantial sales, reflecting the sector's robust expansion globally.

(With inputs from agencies.)