China’s semiconductor industry shows no signs of slowing down. China has a steady stream of projects signed and initiated in June alone. The few deals we’ve discussed show over 81 billion yuan (the equivalent of $12.1 billion) invested in just three weeks.

Most of the projects launched include new manufacturing headquarters, which explains China’s orders of chip-manufacturing equipment from overseas suppliers. The country’s spending increased to 58% in 2021, making it the biggest market for those products for a second year running, according to data provided by industry body SEMI, confirming China’s four consecutive years of growth. A common theme for all these newly initiated projects in China is that they all have at least one segment of their focus on smart technology, new materials, electronic components, or semiconductor equipment

One of the largest projects launched was Konka‘s semiconductor East China headquarters and advanced manufacturing industrial park project settled in Shaoxing. This project has over 5 billion yuan earmarked for its total investment, with the expectation of ramping into production by the end of March 2023. Its focus is on semiconductors, new energy, and related intelligent manufacturing.

Meanwhile, the 2022 Minhang District Monthly Investment Cloud Signing Ceremony launched 49 projects with a total investment of 20.65 billion yuan. Seven projects, including Shanghai Shide Technology Co., Ltd., Shanghai Tanmu Semiconductor Technology Co., Ltd., and Shanghai Aixianchang Information Technology Co., Ltd., all settled in Shanghai Xinzhuang Industry Zone and most focused on IC design in some fashion.

Some new material projects are the electronic grade Copper-based new material project in Chizhou’s High-Tech Zone and the Chuanjinxiang wet electronic chemical material project in Jiangsu Province. Jiangxi Rongxin Copper Industry Co Ltd.’s vision includes the acquisition, processing, and sales of waste non-ferrous metals, electrolytic copper, copper rods, copper wires, copper bars, anode plates, wires, cables, and lacquered wires. The project’s first phase will consist of the production line of high-strength and high conductivity electronic grade copper wire and bars.

Chuanjinxiang has formed a circular economy supply chain using natural gas as a raw material to produce synthetic ammonia, nitric acid, ammonium nitrate, urea, melamine, nitro compound fertilizer, hydrogen peroxide, and peracetic acid, and has core technologies across all links of the supply chain. According to the investment agreement, Chuanjinxiang will invest in the construction of 10,000T/year of electronic liquid ammonia, 10,000T/year of electronic nitric acid, 20,000T/year of electronic hydrofluoric acid, 40,000 T/year of electronic sodium hydroxide and other electronic special chemical projects in Hongze Economic Development Zone. Among them, 50,000T/year of electronic hydrogen peroxide will be completed and implemented within this year.

“44% increase in manufacturing equipment spending in 2021 highlights the global semiconductor industry’s aggressive push to add capacity,” said Ajit Manocha, SEMI president and CEO, “This drive to expand production capabilities extends beyond the current supply imbalance, as the industry continues to ramp up to address a wide range of emerging high-tech applications that will enable a smarter digital world with countless social benefits.”

So, China’s semiconductor industry is not alone in its robust growth. It is just ahead of the game. Korea, the second-largest equipment market, registered a sales increase of 55% to $25.0 billion after showing strong growth in 2020. Taiwan logged a 45% growth to $24.9 billion to claim the third position. The annual semiconductor equipment spending increased 23% in Europe and 17% in North America, which continues to recover from a contraction in 2020. Sales in the Rest of the World jumped 79% in 2021.


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