China to lead global chipmaking investment in 2025

China is expected to lead the world in investment in chipmaking equipment in 2025, according to a report from industry group SEMI. Despite a significant decline of 24% from 2024, China will still outpace other regions, including Taiwan and Korea. Overall, global spending on chipmaking equipment is projected to rise by 2% this year, reaching $110 billion. This marks the sixth consecutive year of growth, driven by investments linked to artificial intelligence. SEMI predicts that the impact of AI will boost investment further in 2026, with an expected growth of 18%. China has been the largest consumer of chips and has increased its chipmaking capacity, especially after a push in mid-2023. This effort aims to reduce reliance on imported chips amid U.S. government restrictions. ASML, the leading manufacturer of chip-making equipment, anticipates sales between €32 billion and €38 billion this year. This suggests a strong market presence, particularly in lithography, where it holds a dominant position. Other notable equipment firms include Applied Materials and KLA. While Chinese spending is expected to drop to $38 billion in 2025, it remains ahead of Korea, which is projected to invest $21.5 billion, mainly through SK Hynix and Samsung. Taiwan's investment, led by TSMC for AI chip production, is expected to reach $21 billion. In comparison, the Americas and Japan are each set to spend $14 billion, while Europe’s investment will be around $9 billion, according to SEMI.