Chinese semiconductor device to chase Korea
Kim Eun | silverkim@ | 2017-11-20 10:16:26

[Digital Times, Kim Eun] China, which has declared `Semiconductor Rise`, is expected to threaten Korea by rising to second place in the world semiconductor equipment market next year due to large-scale local companies` investment in semiconductor equipment and domestic equipment purchase. Accordingly, Korean, Chinese and Taiwanese makers are expected to play a fierce three-point battle in the global semiconductor equipment market, which will reach USD 53 billion next year.

According to the International Semiconductor Equipment Association (SEMI), sales of Chinese semiconductor equipment manufacturers are projected to increase by 61.5 percent to USD 11 billion this year, up from USD 6.8 billion this year. China is expected to reach No. 2 in 2016, followed by Taiwan (about USD 12.2 billion) and South Korea (about USD 7.7 billion) in equipment orders worth about USD 6.5 billion, followed by Korea (USD 13.3 billion) done. Taiwan is expected to rank third with USD 10.9 billion next year. Korea will be the first in the semiconductor equipment market to outperform Taiwan in the first place this year.

The global semiconductor equipment market is expected to record a record high of USD 53.2 billion this year, up 19.8% from USD 41.2 billion last year to USD 49.4 billion this year, up 7.7% from this year.

According to the China Electronics Equipment Industry Association, the total sales of major semiconductor equipment manufacturers in China is expected to reach CNY 7.65 billion this year, up 33 % from last year. Chinese semiconductor equipment makers are rapidly raising their technological capabilities by supporting the development of the Chinese government and increasing the purchase of equipment by semiconductor makers. In particular, Hari Microelectronics and China Microchip International, among others, are among the top suppliers of semiconductor equipment in China. They are currently developing dry etching equipment for semiconductor advanced packaging processes, optical filters and etchants and it has succeeded in localizing major equipment and materials.

The Korean equipment industry has observed that it is a matter of time before China takes the first place in the semiconductor equipment industry, as China will purchase more domestic semiconductor equipment in the future.

China`s largest semiconductor design firm, Tsinghua Unic Group, said earlier this year that it plans to build a memory semiconductor plant by investing KRW 77 trillion in three locations in China.

It is also voiced that China is able to acquire domestic equipment makers by taking advantage of its tremendous financial strength.

"As China`s semiconductor equipment investment is rapidly increasing, related Chinese equipment makers will soon follow Korea to the bottom of the market," an industry official said. "The government will minimize unnecessary regulations, as well as helping to increase exports."

By Kim Eun silverkim@


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