Artificial intelligence (AI) is now the primary growth driver for the global semiconductor industry. With AI-related demand expected to surge further in 2025, semiconductor equipment spending is on track for another major expansion. Against the backdrop of escalating US sanctions, China is positioning itself to leverage the AI boom as a possible rebound strategy, drawing intense global attention to its next move.
China is forecast to take nearly 40% of global semiconductor equipment orders, underscoring its role as a key demand driver. Whether Chinese companies can capitalize on AI momentum and navigate international restrictions will be in sharp focus at SEMICON China 2025, which opens on March 26 in Shanghai.
Key international players retreat as Chinese manufacturers advance
Interestingly, several key international players are skipping the event. US-based Applied Materials and Dutch lithography leader ASML will not be exhibiting. Applied Materials is participating only in affiliated forums and the CSTIC conference, while ASML continues its years-long absence from the show floor.
Held alongside SEMICON China, the ongoing CSTIC 2025 is running from March 24–25 in Shanghai, featuring ten technical symposiums spanning semiconductor science and technology.
Filling the vacuum are Chinese homegrown equipment manufacturers such as Naura Technology, Advanced Micro-Fabrication Equipment (AMEC), and Acm Research (Shanghai), Inc. These firms are gaining momentum both in China's domestic substitution push and in global markets.
Growing financial strength of domestic suppliers
China's top equipment makers are posting robust double-digit growth. Naura projects 2024 revenue between CNY27.6 billion (US$3.81 billion) and CNY31.78 billion, representing a 25% to 43.93% year-over-year increase. Net profit is expected to reach CNY5.17–5.95 billion, up 32.6% to 52.6%.
Acm Research (Shanghai) forecasts 2024 revenue of CNY5.618 billion, up 44.48% year over year. Net profit is projected at CNY1.153 billion, a 26.65% increase. Its core cleaning equipment segment is expected to generate CNY4.057 billion—roughly 72.22% of total revenue—with a 55.18% annual gain.
Hangzhou Changchuan Technology (CCTech), a specialist in IC testing equipment, expects 2024 net profit to soar between CNY400 million and CNY500 million—representing explosive growth of 785.75% to 1,007.18%, driven primarily by expanded overseas shipments.
AI wave propels industry-wide growth
With AI adoption accelerating, Chinese semiconductor equipment makers are riding a rising tide. Industry projections put global chip sales at over US$700 billion in 2025, with equipment investment forecast to hit US$112.8 billion. Chinese suppliers are well-positioned to capitalize on this uptrend.
China continues to be the world's largest market for semiconductor equipment. The domestic AI boom, led by startups like DeepSeek, is fueling demand for both chips and manufacturing tools.
SEMI projects global semiconductor equipment sales will hit US$109 billion in 2024, up 18.7% from 2023. Momentum is expected to carry into 2025, with sales reaching US$128 billion—another 18% annual gain. China is projected to account for nearly 40% of global demand.
China's expansion in domestic chip production—especially in mature-node processes—is a key driver of rising equipment investment and technology upgrades.
As geopolitical challenges and AI momentum converge, SEMICON China 2025 will be a critical litmus test for whether China's homegrown semiconductor equipment makers can translate ambition into execution.
Article edited by Jerry Chen
