INDUSTRY BRIEF: Chinese chip-equipment buying surges in first half of 2024

China purchased a record $25 billion worth of equipment used to make high-tech microchips in the first half of 2024, more than Taiwan, the U.S. and South Korea combined. Among those four markets, China was the only one to increase its spending on chip-making equipment year-on-year in the first half of the year, Nikkei Asia reported on Monday, citing data from SEMI, a global chip organization.

China has been ramping up its spending on chip-making equipment in anticipation of potential new U.S. sanctions that might ban such sales in the future. The U.S. and other Western countries have already banned the sale of some advanced chip-making equipment to China, which is trying to become self-sufficient in the sophisticated technology.

China continued to spend heavily on chip-making equipment in July, according to SEMI. The country is expected to be the biggest global builder of new chip factories this year, with total spending forecast to hit $50 billion, according to Nikkei Asia.

Reporting by Doug Young

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