China is investing hundreds of billions of yuan in semiconductor manufacturing equipment via channels like the National Integrated Circuit Industry Investment Fund, focusing on overcoming bottlenecks in lithography machines and etching equipment to boost industrial chain self-reliance.
The investment targets three core areas: R&D for "chokepoint" equipment (e.g., lithography machines), industrialization of mature-process equipment, and talent/technology reserves. Industry experts note the sector—an industry cornerstone—is catching up fast, despite gaps with global leaders.
Market & tech progress is notable:
- 2023: $30B market size, 20% domestic share (doubled in 3 years)
- H1 2024: Major firms’ revenue >¥30B (+45% YoY); 2024 full-year forecast >¥110B (global-leading growth)
- Strides in etching/cleaning equipment; some products (e.g., Honghu Semiconductor’s vacuum wafer robot) meet global standards, breaking Japan-U.S. monopoly.
Top firm Naura Technology mass-produces 28nm equipment (14nm in customer validation) and shifts from "following" to "matching" peers (¥265.384B market cap reflects confidence). However, lithography machines (<1% localization) and metrology equipment (<5%) need long-term development.
To accelerate breakthroughs, China uses an "industry-academia-research-application" model: chipmakers provide verification platforms, cutting industrialization cycles. For example, Xiangcheng High-Tech Zone links enterprises with universities to turn lab results into production applications and sets industry standards.
While giants like Applied Materials and ASML long dominated the global market, Chinese firms are reshaping the landscape. Insiders predict major breakthroughs in a decade, fueled by policy, demand, and capital—strengthening chain self-reliance.
ICgoodFind : China’s semiconductor equipment localization gains momentum. Driven by tech breakthroughs and market growth, it will energize the global semiconductor ecosystem and reshape the industry.
