China the Largest Buyer of Chipmaking Machines As Sales Hit An All-Time High

Global sales of semiconductor fab equipment grew by 5 percent during 2022 to hit an all-time high, with China the largest buyer despite a fall in its investment amid the standoff with the US over access to chips and other technology. The Register reports: The figures come from SEMI, the industry body for electronics manufacturing and supply chain, in a new Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report. According to the report, sales of chipmaking kit hit $107.6 billion last year, up from $102.6 billion in 2021, as semiconductor companies invested to add more capacity, despite the downturn that took hold in the latter half of last year as inflation gripped many economies. "The record high for semiconductor manufacturing equipment sales in 2022 stems from the industry's drive to add the fab capacity required to support long-term growth and innovations in key end markets including high-performance computing and automotive," claimed SEMI president and CEO Ajit Manocha. These results also reflect a desire by chipmakers in multiple regions to avoid any repetition of the supply chain issues that surfaced during the pandemic, he added. Many companies cut investment then, in response to falling orders, leading to shortages when demand picked up again. China remained the largest market for semiconductor equipment despite seeing a 5 percent slowdown in investments compared with the previous year, according to SEMI. This drop is likely caused by US moves to curtail China's ability to make advanced chips, which has now extended beyond American companies such as Applied Materials to include others such as Dutch photolithography giant ASML, as Washington has browbeaten allied nations including the Netherlands and Japan to join its sanctions.

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