With the ongoing recovery and capacity expansion of the global semiconductor industry, demand for semiconductor equipment has experienced explosive growth. Demand for core equipment such as etchers, thin-film deposition systems, lithography machines and ion implanters continues to rise, making this a high-growth sector within the semiconductor supply chain. Data indicates that the global semiconductor equipment market is projected to exceed US$120 billion by 2026, representing a year-on-year increase of 32%, with demand for advanced process equipment growing at the fastest rate.

The global wave of wafer fab expansion is the key driver behind the growth in demand for semiconductor equipment. Manufacturers such as TSMC, Samsung, SMIC and Micron are all increasing their investment in wafer production capacity. By 2026, global new wafer production capacity is expected to exceed 2 million wafers per month, directly driving a significant increase in demand for semiconductor equipment. Among these, demand for advanced process equipment is particularly robust, with etchers and thin-film deposition equipment for 7nm and below processes becoming the focus of manufacturers’ procurement.

Currently, the global semiconductor equipment market is largely dominated by international manufacturers such as Applied Materials, Lam Research and ASML, with domestic semiconductor equipment manufacturers holding a market share of less than 15%. However, domestic equipment manufacturers are accelerating their breakthroughs. Companies such as Northern HuaChuang, AMEC and Semiconduktor Shanghai have launched products including etchers, thin-film deposition equipment and cleaning equipment, achieving import substitution in the mid-to-low-end market, with some products already entering the supply chains of leading foundries such as TSMC and SMIC.

At the policy level, the government continues to increase support for the semiconductor equipment industry, introducing measures such as R&D subsidies and tax incentives to encourage domestic manufacturers to boost R&D investment and overcome bottlenecks in core technologies. Industry analysts predict that as the technical capabilities of domestic semiconductor equipment continue to improve, the market share of domestic equipment will gradually expand. It is projected that by 2028, the market share of domestic semiconductor equipment manufacturers will exceed 30%, gradually achieving self-reliance and control over semiconductor equipment.

Furthermore, the growth in demand for semiconductor equipment has also driven demand for upstream equipment components. Domestic equipment component manufacturers have consequently increased their R&D investment, raised the localisation rate of components, improved the semiconductor equipment industrial chain, and promoted the coordinated development of the domestic semiconductor equipment industry.