Dublin, Nov. 09, 2026 (GLOBE NEWSWIRE) -- "China Semiconductor Equipment Market Size, Share, and Industry Analysis - Forecast to 2036" has been added to ResearchAndMarkets.com's offering.
The China semiconductor equipment market was valued at USD 49.31 billion in 2025 and is estimated to reach USD 45.86 billion in 2026. The market is projected to expand to USD 71.22 billion by 2036, representing a CAGR of 4.5% during the 2026-2036 forecast period. The report examines semiconductor manufacturing equipment sales to mainland China fabs, including front-end wafer fabrication, back-end test and assembly, advanced packaging, and fab facility systems. Taiwan is excluded from the analysis.
China remains the world's largest buyer of semiconductor manufacturing equipment. According to SEMI, equipment billings reached a record USD 49.55 billion in 2024 and remained at USD 49.31 billion in 2025, accounting for approximately 36.5% of global billings of USD 135.1 billion. Spending exceeded earlier expectations as manufacturers accelerated purchases before additional trade restrictions took effect. ASML reported that China represented 33% of its 2025 net system sales, although the company expects the share to decline to approximately 20% in 2026.
China Semiconductor Equipment Market Drivers and Restraints
Government support for semiconductor self-reliance continues to drive investment. Big Fund III, launched in May 2024 with RMB 344 billion in registered capital, targets semiconductor equipment, materials, and advanced manufacturing. Regional funds and incentives in Shanghai, Beijing, Shenzhen, Hubei, and other locations are also supporting capacity additions and equipment localization.
Chinese foundries and integrated device manufacturers are expanding production at 28 nm and above to serve automotive, industrial, consumer electronics, power semiconductor, and specialty chip applications. Memory manufacturers, including ChangXin Memory Technologies and Yangtze Memory Technologies, continue to invest in DRAM and 3D NAND. Advanced packaging spending is also increasing as chipmakers adopt chiplets, 2.5D and 3D integration, hybrid bonding, and HBM-related processes.
Export controls remain the principal market restraint. U.S. rules introduced in October 2022 and expanded in October 2023, December 2024, and September 2025 restrict equipment used for advanced logic and memory manufacturing. Dutch licensing requirements cover selected immersion lithography systems, while Japan placed 23 semiconductor equipment categories under export controls in July 2023.
Additional challenges include the absorption of equipment purchased during 2024 and 2025, long qualification cycles, limited domestic capabilities in lithography, metrology, and ion implantation, and dependence on imported pumps, RF generators, flow controllers, valves, optics, and other critical subsystems. Equipment servicing and shortages of qualified engineers also affect market development.
High-Growth Equipment and Application Segments
Deposition equipment is expected to account for the largest equipment share in 2026, supported by increasing process complexity, continued 3D NAND investment, and wider adoption of tools from domestic suppliers such as NAURA and Piotech. Assembly & packaging equipment is projected to record the highest CAGR through 2036 as Chinese companies expand advanced packaging, chiplet, wafer-level, bonding, and HBM stacking capabilities.
Foreign suppliers are expected to retain the larger market share in 2026 because Chinese fabs remain dependent on imported lithography, metrology and inspection, and advanced process equipment. Domestic suppliers are forecast to grow faster, supported by export restrictions, Big Fund III, customer qualification programs, and procurement policies favoring locally manufactured tools. Near-term localization opportunities are strongest in mature-node etch, deposition, cleaning, CMP, thermal processing, and coat-and-develop equipment.
Foundry & logic applications are expected to lead the market in 2026, reflecting continued mature-node capacity expansion by companies including SMIC. Power & compound semiconductors are projected to register the highest application CAGR as demand for silicon carbide and gallium nitride devices rises across electric vehicles, renewable energy, solar inverters, and industrial systems. China produces approximately 99% of global primary gallium, according to the U.S. Geological Survey, strengthening its position in compound semiconductor supply chains.
Mature nodes of 28 nm and above are expected to hold the larger technology share in 2026, while advanced nodes below 28 nm are forecast to grow faster as domestic equipment capabilities improve. The 300 mm segment will remain the largest wafer size category, but 200 mm & below equipment is expected to record stronger growth due to new silicon carbide, gallium nitride, analog, and specialty semiconductor capacity.
Regional Market Outlook
The Yangtze River Delta is expected to remain China's largest semiconductor equipment market in 2026. The region includes major fabs, packaging operations, and equipment manufacturers across Shanghai, Jiangsu, Zhejiang, and Anhui. Shanghai hosts SMIC, AMEC, ACM Research, and SMEE, while Jiangsu contains significant packaging and fabrication capacity. Hefei is a major DRAM manufacturing center.
Central China is forecast to achieve the highest regional CAGR through 2036. Growth is supported by Yangtze Memory Technologies' 3D NAND operations in Wuhan and new silicon carbide and power semiconductor projects in Hunan and Henan. The Pearl River Delta is also positioned for strong expansion due to Guangdong's electronics and electric vehicle industries, SMIC's Shenzhen fab, specialty foundries in Guangzhou, and a growing base of local equipment companies.
Competitive Landscape
Global suppliers continue to lead in lithography, metrology, inspection, and several advanced process categories, while Chinese manufacturers are gaining market share in etch, deposition, cleaning, CMP, thermal processing, and related mature-node applications. Competition centers on process performance, export compliance, licensing, uptime, reliability, service, pricing, and supply security.
Companies assessed include Applied Materials, Lam Research, KLA, ASML, Tokyo Electron, SCREEN Holdings, Hitachi High-Tech, Advantest, Teradyne, Kokusai Electric, NAURA Technology Group, AMEC, ACM Research, Piotech, Kingsemi, Hwatsing Technology, Shanghai Micro Electronics Equipment, and Hangzhou Changchuan Technology.
The report provides market forecasts through 2036 and evaluates equipment localization, export controls, industrial policy, fab projects, technology nodes, wafer sizes, supplier origin, end users, regional opportunities, pricing, and competition. It supports market entry, investment, sales planning, partnership evaluation, localization strategy, and supply chain decisions for equipment manufacturers, component suppliers, semiconductor companies, OSAT providers, and investors.
For more information about this report visit https://www.researchandmarkets.com/r/55ngxm
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