Chinese semiconductor equipment companies have entered the global top 20, and the domestic production rate has increased to 30%.

South Korean media: China's rise in the semiconductor industry, three equipment companies enter the global top 20!

On March 4, the South Korean media "Global Economy" published an article stating that the latest statistics show that the number of Chinese companies in the global top 20 semiconductor manufacturing equipment enterprises increased to three, up by two from three years ago. Through building its own supply chain, China has raised the domestic production rate of semiconductor manufacturing equipment, previously considered a weakness, to 20% to 30%.

Data from the Japanese research institution Global Net shows that on the list of semiconductor-related equipment sales, the Chinese company NAUGHT (Northern Semiconductor) rose to the fifth position, Zhongwei Semiconductor Equipment ranked thirteenth, and Shanghai Micro Electronics ranked twentieth. In 2022, before the United States fully implemented export restrictions on high-end equipment, NAUGHT was only in the eighth place, being the only Chinese company entering the top 20 list.

If the list is expanded to the top 30, then five Chinese companies have successfully made the list.

For a long time, China has always taken enhancing self-sufficiency in the semiconductor industry as a national strategic goal, and has continuously increased investment in related fields. Through state-led funds, investment in the semiconductor equipment and materials sectors has been increased. This has led to a sharp increase in the number of equipment manufacturers, and new enterprises have also sprung up like mushrooms after rain.

U.S. regulations have further accelerated this trend. Analysts believe that the domestic production rate of Chinese semiconductor equipment has rapidly increased from around 10% three years ago to 20% to 30%.

To prevent the development and production of advanced semiconductors, the U.S. has restricted equipment exports, but China has begun to establish an independent supply chain. Semiconductor manufacturing requires more than 1,000 processes for advanced products, and each process needs specialized equipment. A senior executive from a company supplying parts to Chinese equipment companies said, "Chinese companies can now cover the entire process, including film deposition, etching, and cleaning."

With China achieving autonomous production of semiconductor manufacturing equipment, the competitive landscape and supply chain order of the global semiconductor equipment market will undergo structural changes.

In the short term, competition among Japanese, U.S., and European companies in the Chinese market will become increasingly fierce.

Data from the International Semiconductor Industry Association SEMI shows that equipment sales to China increased by 35% year-on-year in 2024, reaching $49.5 billion, becoming the largest market with a 40% share of the global semiconductor manufacturing equipment market. The share of the Chinese market in Tokyo Electron's sales reached as high as 40%.

In the long term, as China's semiconductor supply chain becomes increasingly complete, the technological advantages of Japan and the U.S. may face challenges.

Currently, Chinese companies have not yet developed extreme ultraviolet (EUV) exposure equipment required for the manufacture of 2nm, 3nm and other advanced semiconductors. The CEO of ASML, the only company producing EUV equipment globally, Christophe Fouquet said in April last year that China would need "an extremely long time" to develop this technology. The Nikkei News pointed out: "Although the technological gap still exists, if the current trend continues, it may pose a threat to Japan and the U.S."

Original: toutiao.com/article/1858715969271819/

Statement: This article represents the views of the author alone.