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In the current global technology competition, the semiconductor industry, as the core pillar of modern information technology, has become a battleground for countries vying for technological dominance. As the adage goes, "To do a good job, one must first sharpen their tools," semiconductor equipment plays a pivotal role in this "chip revolution," meticulously crafting every key aspect of the semiconductor industry through precision craftsmanship and cutting-edge technology.

In recent years, the Chinese semiconductor equipment industry has developed rapidly, with market size continually setting new records and domestic equipment companies achieving impressive performance growth. Despite the complex and changing international landscape, these companies have unwaveringly pursued domestic development strategies, striving to write their own brilliant chapter.

What are the driving forces behind the rapid advancement of China’s semiconductor equipment industry? How will it further expand its presence within the global semiconductor supply chain and achieve greater breakthroughs and leaps forward?

The Chinese semiconductor equipment market is continuously expanding, driven by multiple factors working in synergy.

First, the deep adjustment of the global semiconductor industry landscape has brought unprecedented development opportunities to China. As the global economic center gradually shifts eastward and China’s manufacturing sector boasts a solid foundation with a complete industrial chain, numerous international semiconductor companies have increasingly focused their strategic layouts on China, gradually transferring production and R&D processes to the country. This industrial transfer trend has directly spurred strong demand for semiconductor equipment, providing robust support for the expansion of the Chinese semiconductor equipment market.

Second, the strong policy support from the government has acted as a powerful stimulus for the semiconductor equipment industry. Since the 13th Five-Year Plan, policy initiatives such as "Made in China 2025," the "14th Five-Year Plan," and the National Integrated Circuit Industry Investment Fund ("Big Fund") have been continuously implemented, establishing a comprehensive policy support system that injects strong momentum into the industry's development and lays a solid policy foundation for its future growth.

Third, the rise of domestic equipment companies has begun to make a significant impact. For a long time, China's semiconductor industry was highly dependent on imported equipment, leading to high costs and potential risks in key technologies and supply chain security. In recent years, domestic companies have increased their investments in semiconductor equipment R&D, striving to overcome technological bottlenecks. After years of relentless effort, some domestic semiconductor equipment has reached international advanced levels in both technology and performance, gradually gaining market recognition and steadily increasing market share, further driving market expansion.

Finally, the explosive growth in downstream application fields has opened up vast develop

Wafer fabs, as the core link in semiconductor manufacturing, directly influence the demand for semiconductor equipment. In recent years, domestic wafer fab construction has experienced significant growth. By the end of 2024, several 12-inch wafer production lines have made major progress, with many companies announcing the launch of these lines or sharing their latest updates, injecting strong momentum into the development of the semiconductor industry.

Projects Under Production

Runpeng Semiconductor: On December 31, 2024, Runpeng Semiconductor's 12-inch integrated circuit production line in the Bay Area Chip City of Bao'an District, Shenzhen, will officially commence. The total investment in this project is 22 billion RMB, focusing on analog specialty processes above 40nm. Once at full capacity, it is expected to produce 480,000 12-inch power chips annually, which will be widely used in automotive electronics, new energy, industrial control, and consumer electronics.

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Tiancheng Advanced: On December 30, 2024, Tiancheng Advanced's 12-inch wafer-level TSV 3D integration production line in Zhuhai will be put into production. The first phase of this project has an annual production capacity of 240,000 TSV 3D integration products, targeting fields such as smart driving, sensor imaging, and data communications. Tiancheng Advanced plans to complete the second phase between 2028-2032, at which time the capacity will increase to 600,000 wafers per year.

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CabSemi: On December 28, 2024, CanSemi's third-phase project will commence. This project, with a total investment of 16.25 billion RMB, uses 180-90nm process technology to build a platform for industrial-grade and automotive-grade analog specialty processes. The new monthly capacity is expected to reach 40,000 wafers, with an estimated output value of 4 billion RMB.

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Huahong Wuxi: On December 10, 2024, Huahong Wuxi's second-phase integrated circuit R&D and manufacturing base 12-inch production line will begin, marking the official start of production. The second-phase project, with a total investment of 6.7 billion USD, focuses on automotive-grade chips, and is expected to reach a total monthly capacity of approximately 180,000 wafers once at full production.

Expansion Projects

SMIC: SMIC will significantly expand production in 2024, with the monthly capacity of its 12-inch wafer production expected to increase by 60,000 wafers by the end of the year. SMIC has multiple production bases in Shanghai, Beijing, Tianjin, and Shenzhen, and projects such as SMIC Dongfang, SMIC Shenzhen, SMIC Xiqing, and SMIC Beijing are accelerating.

GZChip: Since launching its production line on June 28, 2024,GZChip has made significant progress in equipment debugging and yield improvement, with the first product off the line achieving a yield rate of 99.7% and passing 168-hour high-temperature reliability testing. GZChip plans to invest 37 billion RMB over the next five years to build two intelligent wafer fabs, with a total production capacity of 120,000 wafers per month. The first fab will achieve a monthly output of 20,000 wafers by the end of 2025.

Construction Projects

Yandong Microelectronics: Yandong Microelectronics plans to issue A-shares to Beijing Electronics Holdings Co., Ltd. to raise up to 4.02 billion RMB, of which 4 billion RMB will be used for the North Electric Integrated 12-inch integrated circuit production line project. The total investment in this project is 33 billion RMB, with planned production capacity of 50,000 wafers per month for 12-inch wafers, targeting specialized process products such as 28nm-55nm HV/MS/RF-CMOS, PD/FD-SOI for fields including display driving, mixed-signal, and embedded MCUs. According to the construction schedule, the North Electric Integrated project is expected to start in 2024, with equipment installation in the fourth quarter of 2025, mass production by the end of 2026, and full capacity by 2030.

According to SEMI data, three more wafer fabs are scheduled to start in mainland China in 2025. All signs point to the fact that wafer fab construction in mainland China has entered a period of rapid growth, which will undoubtedly create vast new opportunities for the semiconductor equipment market.

Currently, with the continuous expansion of domestic wafer fab construction and explosive growth in semiconductor equipment demand, leading domestic semiconductor equipment companies have seen their performance soar, with 2024 marking a new high.

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NAURA: As a leader in the domestic semiconductor equipment sector, NARUA expects its revenue in 2024 to reach between 27.6 billion and 31.78 billion RMB, an increase of 25% to 43.93%. The net profit attributable to the parent company is expected to range between 5.17 billion and 5.95 billion RMB, representing a growth of 32.6% to 52.6%. The non-GAAP net profit is expected to range between 5.12 billion and 5.89 billion RMB, representing a growth of 42.96% to 64.46%.

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AMEC: AMEC also performed excellently. It is expected to achieve a revenue of approximately 9.065 billion RMB in 2024, an increase of about 28.02 billion RMB compared to 2023, representing a year-on-year growth of 44.73%. The net profit attributable to the parent company is expected to be between 1.5 billion and 1.7 billion RMB, a slight decrease compared to the previous year, with a reduction of about 286 million to 86 million RMB, representing a year-on-year decrease of 16.01% to 4.81%. However, the non-GAAP net profit is expected to range between 1.28 billion and 1.43 billion RMB, an increase of 7.43% to 20.02%.

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ACM Research,inc: ACM Research,inc is also achieving remarkable results in 2024. The expected revenue will be between 5.6 billion and 5.88 billion RMB, showing a year-on-year increase of 44.02% to 51.22%, marking a new high since its listing in 2021.

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The performance growth of these leading companies can be attributed to several key factors:

High R&D Investment and Technical Barriers: North Hua Chuang has made breakthroughs with several.