● International Development
1. Global semiconductor equipment market in 2025 Q1: Chinese Mainland still ranks first with 32% of sales
On June 9th, according to the latest statistical data released by the International Semiconductor Industry Association (SEMI) and the Japan Semiconductor Manufacturing Equipment Association (SEAJ), global semiconductor manufacturing equipment sales in the first quarter of this year set a record high, with the growth rate reaching the largest increase in 13 quarters.
Specifically, global semiconductor equipment sales in the first quarter of this year surged 21% year-on-year to $32.05 billion, marking the fourth consecutive quarter of growth and the third consecutive quarter of double-digit percentage growth (over 10%), the largest increase in 13 quarters (a surge of 41% since the October December quarter of 2021). Quarterly sales reached the second highest record in history since 2005 with comparable data (only lower than the $33.56 billion in October December 2024).
From the perspective of regional sales changes, sales in Chinese Mainland fell to US $10.26 billion year-on-year in the first quarter, but it still became the world's largest chip equipment market for the eighth consecutive quarter. However, due to the increase of semiconductor equipment investment in Taiwan, China and South Korea, the proportion of Chinese Mainland in the overall semiconductor equipment sales shrank to 32% from 47% in the same period last year; The sales volume of the Korean market surged by 48% to US $7.69 billion, surpassing Taiwan, China for the second quarter in a row and becoming the world's second largest semiconductor equipment market; Taiwan, China's market sales jumped 203% year-on-year to US $7.09 billion; Sales in the North American market surged by 55% to $2.93 billion; Sales in the Japanese market increased by 20% to 2.18 billion US dollars; Sales in the European market plummeted by 54% to $870 million.
2. Global wafer foundry market in Q1 2025: SMIC ranks third with a 6% share, and JA Solar ranks ninth
On June 9, the latest research report released by the market research organization TrendForce showed that the global wafer foundry industry in the first quarter of 2025 was affected by changes in the international situation. Many manufacturers prepared in advance, and some wafer foundry manufacturers received urgent orders from customers. In addition, the subsidy policy of trade in for new launched by Chinese Mainland in 2024 continued to offset some off-season shocks. So overall, the global wafer foundry market revenue in the first quarter decreased by about 5.4% month on month to $36.4 billion.
From the revenue ranking of various wafer foundries in the first quarter of this year, although TSMC's wafer shipment amount declined due to the off-season for smartphone stocking, some of the impact was offset by stable demand for AI HPC and urgent orders for TV tariff hedging. Although its revenue decreased by 5% month on month to 25.517 billion US dollars, it still maintained its position as the world's first with a market share of 67.6%.
SMIC benefited from the early stocking of goods by customers in response to US tariff policies, as well as the early procurement of goods through Chinese consumer subsidies, which weakened the negative effect of its average unit price (ASP) decline. Its revenue increased by 1.8% month on month, reaching 2.25 billion US dollars, with a market share of 6%, an increase of 0.5 percentage points month on month, ranking third.
Nexchip in Hefei also received urgent orders from customers in the first quarter to cope with US tariffs and Chinese subsidy policies. The quarterly increase in chip production led to a 2.6% month on month increase in revenue, rising to $353 million and ranking ninth. Looking ahead to the revenue performance in the second quarter, with the early stocking caused by tariffs coming to an end, the overall momentum is gradually slowing down. However, China's subsidy policy of exchanging old for new is expected to continue, and the stocking of new smartphones before their launch in the second half of the year, as well as stable demand for AI HPC, will be the key to driving capacity utilization and shipments in the second quarter. It is expected that the revenue of the top ten wafer foundries will show month on month growth.
3. The global semiconductor market is expected to reach $700.8 billion by 2025, a year-on-year increase of 11.2%
On June 9th, according to the latest data from the Semiconductor Industry Association (SIA) in the United States, although Europe lags behind the United States and Asia in the AI boom, the semiconductor market is expected to recover by 2025.
Specifically, global semiconductor sales in April this year were $57 billion, an increase of 2.5% compared to March, but more importantly, an increase of 22.7% compared to $46.4 billion in April 2024. This also reflects to some extent the recovery of the semiconductor market.
From the performance of semiconductor markets in major regions in the world in April 2025, the growth rate in the Americas region was 44.4%, that in Asia Pacific region/all other regions was 23.1%, that in Chinese Mainland was 14.4%, that in Japan was 4.3%, and that in Europe was 0.1%. If you look at the month on month growth of monthly sales, Chinese Mainland grew 5.5% month on month, Asia Pacific/all other regions grew 5.3% month on month, Europe grew 0.5% month on month, Japan fell 0.6% month on month, and the Americas fell 1.1% month on month.
The spring analysis of the World Semiconductor Trade Statistics (WSTS) also shows that the semiconductor market size is expected to be $700.8 billion this year, a year-on-year increase of 11.2%. This is much lower than the year-on-year growth of 19.7% driven by the AI boom in 2024. However, if the prosperity brought by the AI boom can continue, it will grow by 23% year-on-year in 2025, higher than the 19.7% in 2024, but limited by TSMC's chip manufacturing capabilities.
4. Japan's semiconductor equipment sales hit a historic high from January to May 2025
The Japan Semiconductor Manufacturing Equipment Association (SEAJ) released the latest statistical data on June 24th, showing that the sales of semiconductor manufacturing equipment manufactured in Japan in May 2025 were 446.291 billion yen, an increase of 11.3% compared to the same month last year, achieving the 17th consecutive month of growth. The growth rate has been in the double digits for 14 consecutive months (more than 10%), and has been above 400 billion yen for 7 consecutive months, only slightly lower than the 447.038 billion yen in April 2025, setting a historical record since statistics began in 1986.
From January to May 2025, the cumulative sales of semiconductor equipment in Japan reached 2154.584 billion yen, a significant increase of 20.5% compared to the same period last year. Looking at the same period in previous years, it far exceeded the record high of 1788.033 billion yen in 2024.
5. TDK acquires QEI RF power business
Recently, TDK Corporation announced that it has completed the acquisition of assets related to QEI Corporation's power business. QEI Corporation is headquartered in Williamstown, New Jersey, USA, and specializes in designing and manufacturing advanced RF generators and impedance matching networks for critical plasma processing in semiconductor production. Through this strategic acquisition, TDK has further consolidated its position in the semiconductor equipment market, which is rapidly growing with digital transformation. This also enhances TDK's ability to contribute to the entire artificial intelligence ecosystem. With the surge in demand for semiconductor devices in the fields of artificial intelligence, the Internet of Things, data centers, and electric vehicles, the demand for advanced manufacturing equipment is also increasing.
TDK has previously played an important role in the semiconductor equipment market through its proven quality and reliability, using DC power supplies. The acquisition of QEI's RF power solutions will enable TDK to provide more comprehensive solutions for semiconductor manufacturing processes such as deposition and etching, creating greater value for customers and further expanding its influence in the semiconductor equipment supply chain.
6. By 2028, the global monthly production capacity of 12 inch wafers will reach 11.1 million pieces, and the production capacity of 7nm and below will increase by 69%
On June 26th, the latest forecast report released by the International Semiconductor Industry Association (SEMI) stated that in response to the increasing demand for generative artificial intelligence (AI) applications, global semiconductor suppliers are accelerating production expansion. By 2028, the monthly production capacity of 12 inch wafers worldwide will reach 11.1 million pieces, setting a new historical high, with a compound annual growth rate of 7% from 2024 to 2028.
A key driving force for this growth is the continued expansion of advanced process capacity of 7nm and below, with monthly production capacity increasing from 850000 pieces in 2024 to 1.4 million pieces in 2028, with a compound annual growth rate of 14%, which is twice the average level of the semiconductor industry.
From 2025 to 2028, advanced technology production capacity is expected to maintain a compound annual growth rate of 14%, with a year-on-year increase of 15% starting from 982000 wpm in 2025. It is expected that the industry will achieve an important milestone in 2026, surpassing 1 million wafers for the first time, with a monthly production capacity of 1.16 million wafers.
Throughout the forecast period, the deployment of production capacity of 2nm and below shows more aggressive expansion, with production capacity rapidly increasing from less than 200000 pieces/month in 2025 to over 500000 pieces/month in 2028, reflecting the strong market demand driven by the application of artificial intelligence in advanced manufacturing.
The investment prospects of the semiconductor industry are still firmly anchored in advanced process technology. It is expected that by 2028, capital expenditures on advanced process equipment will surge to over $50 billion, a significant increase of 94% from the $26 billion investment in 2024. This trajectory highlights the industry's firm commitment to next-generation manufacturing capabilities, reflecting a robust compound annual growth rate of 18%.
The transition to cutting-edge nodes continues to accelerate, and it is expected that 2nm technology will achieve mass production by 2026, followed by commercial deployment of 1.4nm technology by 2028. Due to the expected continuous growth in market demand, chip manufacturers are strategically expanding their production capacity ahead of schedule, with growth rates of 33% and 21% in 2025 and 2027, respectively.
The investment in 2nm and below wafer equipment represents a particularly remarkable expansion, with funding increasing from $19 billion in 2024 to $43 billion in 2028, more than doubling. The significant growth of 120% highlights the industry's active pursuit of next-generation manufacturing capabilities.
7. The global DRAM market declined by 5.5% in Q1 2025, with SK Hynix ranking first with a 36% share
On June 3rd, according to the latest survey report released by market research firm TrendForce, the revenue of the DRAM industry in the first quarter of 2025 decreased by 5.5% month on month to $27.01 billion due to the decline in contract prices of conventional DRAM and the convergence of HBM shipment scale. In terms of average selling price, Samsung has changed the design of HBM3e products, which has weakened the crowding out effect of HBM production capacity and caused downstream operators to reduce inventory, resulting in the continuation of the downward trend in contract prices of most DRAM products since the fourth quarter of 2024.
From the revenue performance of major DRAM suppliers in the first quarter, SK Hynix's HBM3e shipment proportion increased, supporting prices roughly the same as the previous quarter. However, the overall shipment volume decreased compared to the previous quarter, resulting in a month on month decline of about 7.1% in overall revenue to 9.72 billion US dollars. The market share remained at 36%, and the ranking also rose to first place.
The second ranked company is Samsung, with a revenue of 9.1 billion US dollars, a significant decrease of 19% month on month, and a market share decline of 5.6 percentage points to 33.7%. This is mainly due to HBM's inability to directly sell to the Chinese market and the significant reduction in high priced product shipments caused by the HBM3e redesign.
Ranked third is Micron, benefiting from the expansion of HBM3e shipment scale. Despite a slight quarterly decrease in selling price, its revenue still reached 6.58 billion US dollars, a month on month increase of 2.7%, and its market share reached 24.3%.
Looking ahead to the second quarter of 2025, TrendForce predicts that PC OEMs and smartphone manufacturers will gradually complete inventory clearance and actively produce complete machines within the 90 day grace period of equivalent tariffs in the United States, driving a rise in purchasing momentum and a significant quarterly increase in original factory shipments. In terms of price, the contract prices of all major applications will stop falling and rebound, while the contract prices of general DRAM and the overall contract prices of general DRAM and HBM will rise.
● Domestic dynamics
1. Guangzhou: Encourage the development of high-end semiconductor and sensor materials, and create the third core carrier area of China's integrated circuit industry
On June 17th, the "Several Policy Measures to Support the High Quality Development of the Integrated Circuit Industry in Huangpu District, Guangzhou Development Zone" was officially issued, helping to build the third core carrier area of China's integrated circuit industry.
Among them, it is mentioned to optimize the layout of industrial development, achieve breakthroughs in chip design, characteristic processes, advanced packaging and testing, EDA tools, equipment and components, and other fields, create a full industry chain covering design, manufacturing, materials, equipment and components, packaging and testing, and build a comprehensive integrated circuit industry cluster. Encourage the development of high-end semiconductor and sensor manufacturing materials such as photomasks, electronic gases, photoresists, polishing materials, and high-purity target materials. Actively introduce domestic key basic material enterprises and steadily improve the supply capacity of key basic materials. We will focus on continuous research and development and technological breakthroughs around key components and system integration in integrated circuit manufacturing, and support the localization and replacement of equipment, key components, and tools such as lithography, cleaning, etching, ion implantation, and deposition. Improve the investment and financing environment, and strive for support from national, provincial, and municipal integrated circuit funds. Give full play to the role of fund platforms such as the district's science and technology innovation and entrepreneurship investment mother fund, and support state-owned enterprise funds to increase cooperation with integrated circuit enterprises.
2. The adjustment strategy of the "National Big Fund Phase III" focuses on investing in key weak areas such as lithography machines
According to Bloomberg, China's major chip investment funds are planning to focus on key areas of weakness such as lithography machines and semiconductor design software, adjusting their strategies to better break through the measures taken by the United States to curb its technological development.
According to informed sources, China's National Integrated Circuit Industry Investment Fund Phase III (referred to as "Big Fund Phase III") will focus on supporting local enterprises and projects in key technology bottleneck areas, including the lithography machine system monopolized by ASML in the Netherlands, as well as the chip design tool field led by Synopsys and Cadence in the United States.
Insiders also revealed that the National Big Fund Phase III is preparing to make its first major investments in the coming months. They added that part of the fund's mission is to promote industry integration through mergers and acquisitions. If the new fund reaches the initial fundraising scale, it will become the largest semiconductor fund in China's history, surpassing the total of the previous two periods. According to the enterprise data platform Tianyancha, its limited partners include the Chinese Ministry of Finance, state-owned banks, and multiple local government backed funds. According to informed sources, the fund has established three sub funds to assist in screening investment targets for the entire semiconductor industry chain.
3. From January to May, China's integrated circuit exports increased by 18.9%
On June 24th, according to customs statistics, the total value of China's goods trade imports and exports in the first five months of 2025 was RMB 1.794 trillion, a year-on-year increase of 2.5%. Among them, exports amounted to 10.67 trillion yuan, an increase of 7.2%; Imports amounted to 7.27 trillion yuan, a decrease of 3.8%.
In the first five months, China exported 6.4 trillion yuan worth of mechanical and electrical products, an increase of 9.3%, accounting for 60% of China's total export value. Among them, automatic data processing equipment and its components amounted to 575.23 billion yuan, an increase of 3.9%; Integrated circuits amounted to 526.4 billion yuan, an increase of 18.9%; Automobiles amounted to 351.37 billion yuan, an increase of 6.6%. During the same period, the export of labor protection products amounted to 1.66 trillion yuan, a decrease of 1.5%, accounting for 15.6%. Among them, textiles amounted to 420.14 billion yuan, an increase of 3.7%. The export of agricultural products reached 296.09 billion yuan, an increase of 4.7%.
In May, China's total import and export value of goods trade was 3.81 trillion yuan, an increase of 2.7%. Among them, exports amounted to 2.28 trillion yuan, an increase of 6.3%; Imports amounted to 1.53 trillion yuan, a decrease of 2.1%.
In May, China exported 30.11 billion integrated circuits with a total value of 121.55 billion yuan. 695000 cars were exported, with a total value of 86.28 billion yuan. In terms of imports, in May, China imported 50.19 billion integrated circuits with a total value of 3366.94 billion yuan, and 40.81 billion diodes and similar semiconductor devices with a total value of 2009.8 billion yuan.
4. In 2024, China's semiconductor equipment expenditure surged by 35%, ranking first globally
Recently, according to the latest statistics from the Semiconductor Industry Institute (SEMI), China's expenditure on semiconductor equipment reached 49.55 billion US dollars in 2024, an increase of 35% compared to the same period last year, making it the world's largest semiconductor equipment spending country.
This growth is mainly due to the support of the Chinese government for the local semiconductor industry and the active expansion of production capacity by enterprises. SEMI pointed out that China has consolidated its position as the world's largest semiconductor equipment market through policy support and industrial investment.
Among them, South Korea ranked second with an expenditure of 20.5 billion US dollars, an increase of 3% compared to last year, mainly due to strong demand for high-frequency wide memory (HBM) produced by Samsung and SK Hynix.
Taiwan, China, China, ranked third with an expenditure of US $16.6 billion, down 16% from last year, mainly due to the slowdown in demand for new equipment. China, South Korea and Taiwan, China accounted for 74% of the global semiconductor equipment market.
5. Hangzhou will implement a new generation of autonomous computing chip research and development action
On June 24th, it was reported that the Hangzhou Municipal People's Government recently issued the "Notice of the Hangzhou Municipal People's Government on Issuing the Implementation Plan for Accelerating the Construction of Artificial Intelligence Innovation Sites in Hangzhou (2025 Edition)" (hereinafter referred to as the "Implementation Plan"), proposing 20 specific measures and the latest policies to support the development of the entire artificial intelligence industry chain.
The Implementation Plan points out that by the end of 2025, the scale of intelligent computing power services in the city will exceed 50 EFLOPS, and 2 basic large-scale models and more than 25 industry application large-scale models will be cultivated at the international first-class level; Strive to achieve a core industry revenue of over 390 billion yuan in artificial intelligence in the city, with over 700 core industry enterprises above designated size, and a total of over 100 billion yuan in industrial funds invested in artificial intelligence in the city.
The Implementation Plan deploys 17 key tasks in five areas by 2025 from multiple perspectives, including core technology research and development, infrastructure construction, resource allocation, scenario application, and industrial layout. Among them, it is proposed that:
Deeply implement the core technology research and development plan. We will deepen the implementation of national, provincial, and municipal key research and development plans, encourage and support enterprises and research institutes to carry out core technology breakthroughs in artificial intelligence, and increase support for technological breakthroughs in high-end chips, basic software, model algorithms, data engineering, embodied intelligence, swarm intelligence, neuromorphic intelligence, EDA software, AI4S, and other fields. By the end of 2025, 10 key research projects in the field of artificial intelligence will be implemented in the city.
Implement the action plan for tackling the new generation of autonomous computing chips. Support AI chip design companies and large model manufacturers to jointly implement the "chip model linkage" project, and tackle the new generation of AI computing chips and end-to-end computing chips. Carry out cluster verification and adaptation pilot testing of domestic computing chips and servers, optimize and improve the stability and overall efficiency of large-scale computing clusters.
6. The first domestic carbon based integrated circuit production line has been put into operation in Chongqing
On the 17th of this month, Peking University Chongqing Carbon based Integrated Circuit Research Institute (hereinafter referred to as Peking University Chongqing Carbon based Institute) announced that the first domestic carbon based integrated circuit production line has recently been put into operation in Chongqing and has begun mass production. The operation of this production line marks a solid first step from laboratory innovation to engineering application of carbon based integrated circuits, which will accelerate the development process of carbon based integrated circuits in China and help "Chinese chips" achieve "lane changing overtaking".
It is reported that the world's first carbon based handheld hydrogen gas detector developed based on carbon based chips has been used in hydrogen energy vehicles such as Bosch and Qingling, which can meet the demand for rapid detection of gas leaks. Next, Peking University Chongqing Carbon based Institute will accelerate the construction of a carbon based integrated circuit manufacturing demonstration line and develop a more advanced and complete process platform.
As the "heart" of electronic products, the chip is the carrier of integrated circuits, divided from wafers. It is reported that the mainstream chips in the current market are silicon-based chips, which use silicon as the core material, while carbon based chips are made using carbon nanotubes and other core materials.
After more than 20 years of research and development, the Peking University Carbon based team has developed a complete set of undoped preparation methods for high-performance carbon nanotube transistors, reaching the world's leading level. Based on this, in 2023, Peking University Chongqing Carbon based Institute was unveiled and established, dedicated to promoting the transformation of Peking University's achievements in Chongqing, conducting research and development on the engineering and industrialization of carbon based integrated circuits, and incubating and cultivating the full chain industrial ecology of carbon based integrated circuits.