TAIPEI (TVBS News) — The Semiconductor Equipment Association of Japan (SEAJ) reported last Friday (Dec. 1) that sales in the worldwide semiconductor equipment market saw an 11% decrease in the third quarter of 2023, marking the largest drop in four years. Contrasting this downturn, China's market experienced a massive sales boom of 42%.
The latest SEAJ statistics show that the global sales of semiconductor manufacturing equipment for Q3 stood at US＄26.6 billion, an 11% decline compared to the same period last year, continuing a two-quarter slide.
However, China's sales surged to US＄11.06 billion, which now represents 43% of global sales, making it the largest semiconductor equipment market in the world.
In a market analysis report on Nov. 14, Nikkei, the world's largest financial newspaper, attributed the global investment slowdown in semiconductor equipment primarily to sluggish smartphone sales, among other consumer electronics, which dragged down overall global chip equipment revenue. In contrast, Chinese firms have shown strong purchasing intentions.
The report also highlighted that the soaring demand for semiconductor equipment in China is largely due to export controls on advanced chipmaking equipment imposed by the U.S., Japan, and the Netherlands. U.S. curbs compelled China to invest heavily in mature process productions.
China currently has 44 chip foundry factories and is expected to establish 32 more large-scale foundries by the end of 2024, all of which will focus on advancing mature processes.