The scale of China's spending is significant, as it surpasses the combined expenditures of South Korea, Taiwan, and the U.S. on chipmaking machines, showcasing China's strong buying power.

In response to these export restrictions, Chinese firms are stockpiling machinery while they still have the opportunity to do so.

This strategic shift allows Chinese fabs to develop and supply chips across various sectors, including the automotive industry, which is increasingly reliant on advanced semiconductor technology.

While China's semiconductor facility spending is expected to normalize in the next two years, global spending is projected to rise, particularly in regions like Southeast Asia, America, Europe, and Japan.

Concerns over potential export control restrictions are prompting Chinese companies to secure more equipment in advance, as noted by SEMI's senior director.

In a remarkable display of commitment to its semiconductor industry, China invested $25 billion in chipmaking equipment during the first half of 2024, outpacing the combined investments of South Korea, Taiwan, and the U.S.

This surge in investment is part of China's broader strategy to localize chip production and reduce reliance on foreign technology amid ongoing trade tensions with the U.S.

Chinese companies have ramped up their imports of chip production equipment, spending nearly $26 billion in just the first seven months of the year, according to Bloomberg.

With over a dozen new fabs set to open in 2024 and 2025, this investment surge is driven by China's urgent need to secure a stable supply of chips.

The increased spending reflects China's commitment to self-reliance in semiconductor production, especially in light of tightening export controls from the U.S. and its allies.

China currently leads the world in wafer starts, with a 12% year-on-year increase in semiconductor production capacity, reaching 7.6 million wafers per month in 2023.

Overall, China is projected to reach a total of $50 billion in semiconductor equipment spending by the end of 2024, reflecting strong confidence in future market demand.