Author: Tronserve admin
Saturday 24th July 2021 10:19 PM
China And Taiwan Set To Lead Chip Investment Surge In 2020
International spending on new semiconductor production sites and equipment is predicted to reach $50 billion in 2020, with mainland Chinese and Taiwanese companies driving a recovery from a decline that began in late 2018. The forecast stated Thursday by U.S.-based industry group SEMI represents a 32% increase from the estimated total for 2019.
It entails 18 projects to enter into construction in 2020, up from 15 this year, while some work could be slowed amid a cooling global economy and the U.S.-China trade war. The projections demonstrate how mainland China is rapidly growing to be a leading force in semiconductor investment.
China, where Beijing is advertising domestic self-sufficiency in memory and other chips, accounts for 11 of these projects, worth $24 billion. Taiwan, a hub for leading chip foundries particularly Taiwan Semiconductor Manufacturing Co., is another heavy contributor to the total at nearly $13 billion. But weak memory prices are seen cutting investment in South Korea, home to industry giants just like Samsung Electronics and SK Hynix. The country ranked as the biggest buyer of chipmaking equipment in 2018.
Chinese moves in semiconductors include plans by the country's second-largest mobile chipmaker, UNISOC Communications, to release a 5G chipset in 2020 to catch up with global leaders such as U.S.-based Qualcomm. Huawei Technologies' chip arm, HiSilicon Technologies, aims to have one ready as soon as this year. SEMI's projections cover facilities for preprocessing, such as circuit etching, which make up the bulk of chipmakers' capital investment.
The estimate covers a note of uncertainty. Eight of the 18 expected projects, totaling more than $14 billion, have a "low probability of materializing," the report says. Protracted trade friction between Washington and Beijing could weaken chipmakers' appetite for investment if demand from tech companies falls. This is mainly true in China, where many of these projects are referred to as less certain. Excluding those leaves just four probable projects valued at $9.6 billion.