China to Continue Leading Investment in Computer Chip Manufacturing Equipment Despite Yearly Declines
Despite a year-on-year decline, China is set to maintain its position as the largest investor in computer chip manufacturing equipment in 2025, outpacing any other geographic region. According to an industry group in China, global investment in chip manufacturing equipment is expected to rise by 2% this year, reaching $110 billion.
The report further suggests that the impact of Artificial Intelligence (AI) on the sector will likely strengthen by 2026, with an expected 18% increase in investment.
China remains the world’s largest consumer of chips, and Chinese firms have been ramping up their chip production capabilities for years. However, during mid-2023 and 2024, these efforts saw a significant surge, largely due to government-backed initiatives prompted by sanctions imposed by the United States.
In response to U.S. actions, China tightened controls on the export of two key materials used in the manufacturing of computer chips in 2023. This move was a retaliatory step after the U.S. sought to restrict China’s access to advanced microprocessors.
The U.S. imposed these restrictions out of concerns that China might use these advanced chips in supercomputing and artificial intelligence applications for military purposes, thereby limiting China’s technological access to prevent potential security risks.
As China continues its push to strengthen its chip-making capacity, the global tech landscape is likely to face significant shifts, especially with AI’s increasing role in the sector.
