The China semiconductor equipment market was valued at USD 49.31 billion in 2025. It is estimated at USD 45.86 billion in 2026 and is projected to reach USD 71.22 billion by 2036, at a CAGR of 4.5% over the 2026-2036 forecast period. This report assesses the market in depth, covering export controls, industrial policy and funding, fab capacity projects, localization by equipment type, technology, supply chain, pricing, and competition.
The market includes all tools used to make, assemble, and test chips in mainland China: front-end wafer fabrication equipment, back-end test, assembly, and advanced packaging tools, and fab facility systems. It is measured by billings to fabs in mainland China and includes tools from Chinese manufacturers as well as imports from American, Japanese, European, and Korean vendors. Buyers include domestic and foreign-owned foundries, memory makers, IDMs, power and compound semiconductor producers, and OSAT companies. Taiwan is not part of the study.
China has been the world's largest buyer of chipmaking tools for several years, and according to SEMI, equipment billings in China hit a record USD 49.55 billion in 2024 and held at USD 49.31 billion in 2025, or roughly 36.5% of worldwide billings of USD 135.1 billion, even though SEMI had earlier expected Chinese spending to drop by 24% in 2025. Much of this came from buying ahead of new trade limits. ASML reported that China represented 33% of its 2025 net system sales, well above its earlier guidance of about 25%, and it expects China to drop to around 20% of sales in 2026.
Export controls are the main restraint, as American rules issued in October 2022 and widened in October 2023 and December 2024 restrict tools for advanced logic and memory and have placed many Chinese firms on the Entity List, and in September 2025 the U.S. Commerce Department extended these limits to majority-owned affiliates of listed firms. The Netherlands has never licensed EUV systems for China and now also requires licenses for the NXT:1970i and NXT:1980i, while Japan brought 23 equipment items under control in July 2023. The market also faces a possible spending pause as tools bought in 2024 and 2025 are absorbed, large technology gaps in domestic lithography, metrology, and ion implantation, and reliance on imported pumps, RF generators, flow controllers, valves, and optics. Further challenges include localizing subsystems, servicing foreign tools already installed, long qualification cycles, and a shortage of skilled engineers.
Opportunities are strongest in replacing foreign tools with domestic ones, building a local lithography industry, and supplying equipment for silicon carbide and gallium nitride devices used in electric vehicles, solar inverters, and industrial systems. According to the U.S. Geological Survey, China produces about 99% of the world's primary gallium. Key trends include the fast rise of local toolmakers, the focus of new investment on mature and specialty nodes, wider use of 2.5D and 3D integration and hybrid bonding, and funding of equipment companies through the STAR Market, state capital, and customer partnerships.
Based on equipment type, the market is segmented into front-end equipment (lithography, etch, deposition, cleaning, CMP, ion implantation, thermal processing, and metrology & inspection), back-end equipment (test and assembly & packaging), and fab facilities & others. Deposition equipment is expected to hold the largest share in 2026. Logic, memory, and specialty devices all require many separate film deposition steps, 3D NAND expansion adds further layers, and Chinese fabs have widely adopted locally made deposition tools from suppliers such as NAURA and Piotech. Assembly & packaging equipment is expected to grow at the highest CAGR during the forecast period, as Chinese companies invest in advanced packaging and chiplet designs to offset restricted access to leading-edge front-end processes and work to build domestic HBM stacking capability.
By supplier origin, the report covers domestic suppliers and foreign suppliers, the latter split into U.S., Japanese, European, and other suppliers. Foreign suppliers are expected to hold the larger share in 2026, since Chinese fabs still rely on imported lithography, metrology and inspection, and many advanced process tools, a dependence reflected in ASML's large China sales in 2025. Domestic suppliers are expected to grow at the higher CAGR, supported by tighter export controls, state funding through Big Fund III, and the policy of Chinese chipmakers to test local tools first on every new line. Local gains are likely to begin in mature-node etch, deposition, cleaning, and CMP.
The application analysis covers foundry & logic, memory (DRAM and NAND flash), power & compound semiconductors, analog & specialty, and advanced packaging. Foundry & logic is expected to lead in 2026, driven by the large build-out of mature-node foundry capacity serving automotive, industrial, and consumer electronics demand, led by companies such as SMIC. Power & compound semiconductors are expected to grow at the highest CAGR, as electric vehicles, renewable energy, and industrial equipment raise demand for silicon carbide and gallium nitride devices and as local makers add new fabs for these materials.
By technology node, the study separates mature nodes (28 nm and above) from advanced nodes (below 28 nm). Mature nodes are expected to hold the larger share in 2026, as most Chinese capacity additions are at 28 nm and above, where foreign tools remain easier to obtain and domestic tools are already production-ready for many steps. Advanced nodes are expected to grow at the higher CAGR during the forecast period, reflecting the national priority on advanced logic and memory and the gradual maturing of domestic equipment for more demanding processes.
Of the two wafer size categories, 300 mm and 200 mm & below, the 300 mm segment is expected to lead in 2026, since nearly all new logic and memory fabs in China are built on 300 mm wafers to gain scale and lower cost per die. The 200 mm & below segment is expected to grow at the higher CAGR, supported by new silicon carbide, gallium nitride, and specialty analog capacity and by the move of silicon carbide production from 150 mm to 200 mm wafers. Much of this equipment can be sourced locally.
End users covered are foundries, memory manufacturers, integrated device manufacturers, and OSAT providers. Foundries are expected to represent the largest share in 2026, reflecting the scale of fab expansion by Chinese foundries and their central role in national self-sufficiency plans. OSAT providers are expected to grow at the highest CAGR, as China's large packaging and test companies invest in advanced packaging, wafer-level processes, bonding, and test capacity to support chiplet and HBM development.
The Yangtze River Delta is expected to be the largest regional market in 2026, as it has the densest cluster of fabs, toolmakers, and packaging companies in the country. Shanghai is the base of SMIC, China's largest foundry, and of toolmakers AMEC, ACM Research, and SMEE. Jiangsu has major packaging operations, including JCET Group, and fabs in Wuxi and Nanjing, Zhejiang is expanding power and specialty chip output, and ChangXin Memory Technologies makes DRAM in Hefei, Anhui. The Beijing-Tianjin-Hebei Region also holds a significant share, as Beijing is the base of NAURA, China's largest domestic toolmaker, and SMIC runs large 300 mm fabs in Beijing and Tianjin.
Central China is expected to grow at the highest CAGR during the forecast period, as Yangtze Memory Technologies in Wuhan, Hubei, is expanding 3D NAND production and, after its addition to the U.S. Entity List in December 2022, has become one of the largest users of domestic deposition, etch, and metrology tools, while Hunan and Henan are building silicon carbide and other power device capacity with provincial funding. The Pearl River Delta is expected to post strong growth, backed by Guangdong's large electronics and electric vehicle industries, SMIC's 300 mm fab in Shenzhen, specialty foundries in Guangzhou, and a new group of Shenzhen-based toolmakers. Western China, with packaging and power device operations in Chengdu and Chongqing and Samsung Electronics' NAND fab in Xi'an, and Northeast China, where SK hynix runs the Dalian NAND fab acquired from Intel, face added uncertainty after the U.S. decided to revoke validated end-user status for foreign memory makers' China fabs from the end of 2025.
Large global toolmakers compete with a fast-growing group of Chinese manufacturers, with foreign vendors keeping their lead in lithography, metrology, and many advanced process tools, while Chinese vendors are taking orders in etch, deposition, cleaning, CMP, thermal processing, and coat-and-develop steps, mostly for mature nodes. Suppliers compete on process performance, export compliance and licensing, uptime and reliability, service support, price, and security of supply. Overseas vendors are redirecting sales toward permitted tools and customers, while domestic vendors are widening their product ranges, raising R&D spending, and working closely with Chinese chipmakers with backing from state funds and the STAR Market.
Key companies profiled in the report include Applied Materials, Inc. (U.S.), Lam Research Corporation (U.S.), KLA Corporation (U.S.), ASML Holding N.V. (Netherlands), Tokyo Electron Limited (Japan), SCREEN Holdings Co., Ltd. (Japan), Hitachi High-Tech Corporation (Japan), Advantest Corporation (Japan), Teradyne, Inc. (U.S.), Kokusai Electric Corporation (Japan), NAURA Technology Group Co., Ltd. (China), Advanced Micro-Fabrication Equipment Inc. China (AMEC) (China), ACM Research, Inc. (China/U.S.), Piotech Inc. (China), Kingsemi Co., Ltd. (China), Hwatsing Technology Co., Ltd. (China), Shanghai Micro Electronics Equipment (Group) Co., Ltd. (China), and Hangzhou Changchuan Technology Co., Ltd. (China).
The market includes all tools used to make, assemble, and test chips in mainland China: front-end wafer fabrication equipment, back-end test, assembly, and advanced packaging tools, and fab facility systems. It is measured by billings to fabs in mainland China and includes tools from Chinese manufacturers as well as imports from American, Japanese, European, and Korean vendors. Buyers include domestic and foreign-owned foundries, memory makers, IDMs, power and compound semiconductor producers, and OSAT companies. Taiwan is not part of the study.
China has been the world's largest buyer of chipmaking tools for several years, and according to SEMI, equipment billings in China hit a record USD 49.55 billion in 2024 and held at USD 49.31 billion in 2025, or roughly 36.5% of worldwide billings of USD 135.1 billion, even though SEMI had earlier expected Chinese spending to drop by 24% in 2025. Much of this came from buying ahead of new trade limits. ASML reported that China represented 33% of its 2025 net system sales, well above its earlier guidance of about 25%, and it expects China to drop to around 20% of sales in 2026.
Market Dynamics
Demand is led by Beijing's push for semiconductor self-reliance, backed by Big Fund III, the newest phase of China's national chip investment fund, which was launched in May 2024 with RMB 344 billion of registered capital and targets equipment, materials, and advanced manufacturing, while Shanghai, Beijing, Shenzhen, and Hubei run their own funds and incentives. Chinese foundries and IDMs continue to add capacity at 28 nm and above for automotive, industrial, consumer, and power chips, a segment less exposed to foreign controls, while ChangXin Memory Technologies and Yangtze Memory Technologies keep investing in DRAM and 3D NAND. Back-end spending is also rising, as limited access to leading-edge processes pushes companies toward chiplets, and large OSAT groups such as JCET Group, Tongfu Microelectronics, and Tianshui Huatian Technology are based in China.Export controls are the main restraint, as American rules issued in October 2022 and widened in October 2023 and December 2024 restrict tools for advanced logic and memory and have placed many Chinese firms on the Entity List, and in September 2025 the U.S. Commerce Department extended these limits to majority-owned affiliates of listed firms. The Netherlands has never licensed EUV systems for China and now also requires licenses for the NXT:1970i and NXT:1980i, while Japan brought 23 equipment items under control in July 2023. The market also faces a possible spending pause as tools bought in 2024 and 2025 are absorbed, large technology gaps in domestic lithography, metrology, and ion implantation, and reliance on imported pumps, RF generators, flow controllers, valves, and optics. Further challenges include localizing subsystems, servicing foreign tools already installed, long qualification cycles, and a shortage of skilled engineers.
Opportunities are strongest in replacing foreign tools with domestic ones, building a local lithography industry, and supplying equipment for silicon carbide and gallium nitride devices used in electric vehicles, solar inverters, and industrial systems. According to the U.S. Geological Survey, China produces about 99% of the world's primary gallium. Key trends include the fast rise of local toolmakers, the focus of new investment on mature and specialty nodes, wider use of 2.5D and 3D integration and hybrid bonding, and funding of equipment companies through the STAR Market, state capital, and customer partnerships.
Segment Analysis
The report analyzes the market by equipment type, supplier origin, application, technology node, wafer size, end user, and region, helping stakeholders identify where spending is concentrated and where it is moving.Based on equipment type, the market is segmented into front-end equipment (lithography, etch, deposition, cleaning, CMP, ion implantation, thermal processing, and metrology & inspection), back-end equipment (test and assembly & packaging), and fab facilities & others. Deposition equipment is expected to hold the largest share in 2026. Logic, memory, and specialty devices all require many separate film deposition steps, 3D NAND expansion adds further layers, and Chinese fabs have widely adopted locally made deposition tools from suppliers such as NAURA and Piotech. Assembly & packaging equipment is expected to grow at the highest CAGR during the forecast period, as Chinese companies invest in advanced packaging and chiplet designs to offset restricted access to leading-edge front-end processes and work to build domestic HBM stacking capability.
By supplier origin, the report covers domestic suppliers and foreign suppliers, the latter split into U.S., Japanese, European, and other suppliers. Foreign suppliers are expected to hold the larger share in 2026, since Chinese fabs still rely on imported lithography, metrology and inspection, and many advanced process tools, a dependence reflected in ASML's large China sales in 2025. Domestic suppliers are expected to grow at the higher CAGR, supported by tighter export controls, state funding through Big Fund III, and the policy of Chinese chipmakers to test local tools first on every new line. Local gains are likely to begin in mature-node etch, deposition, cleaning, and CMP.
The application analysis covers foundry & logic, memory (DRAM and NAND flash), power & compound semiconductors, analog & specialty, and advanced packaging. Foundry & logic is expected to lead in 2026, driven by the large build-out of mature-node foundry capacity serving automotive, industrial, and consumer electronics demand, led by companies such as SMIC. Power & compound semiconductors are expected to grow at the highest CAGR, as electric vehicles, renewable energy, and industrial equipment raise demand for silicon carbide and gallium nitride devices and as local makers add new fabs for these materials.
By technology node, the study separates mature nodes (28 nm and above) from advanced nodes (below 28 nm). Mature nodes are expected to hold the larger share in 2026, as most Chinese capacity additions are at 28 nm and above, where foreign tools remain easier to obtain and domestic tools are already production-ready for many steps. Advanced nodes are expected to grow at the higher CAGR during the forecast period, reflecting the national priority on advanced logic and memory and the gradual maturing of domestic equipment for more demanding processes.
Of the two wafer size categories, 300 mm and 200 mm & below, the 300 mm segment is expected to lead in 2026, since nearly all new logic and memory fabs in China are built on 300 mm wafers to gain scale and lower cost per die. The 200 mm & below segment is expected to grow at the higher CAGR, supported by new silicon carbide, gallium nitride, and specialty analog capacity and by the move of silicon carbide production from 150 mm to 200 mm wafers. Much of this equipment can be sourced locally.
End users covered are foundries, memory manufacturers, integrated device manufacturers, and OSAT providers. Foundries are expected to represent the largest share in 2026, reflecting the scale of fab expansion by Chinese foundries and their central role in national self-sufficiency plans. OSAT providers are expected to grow at the highest CAGR, as China's large packaging and test companies invest in advanced packaging, wafer-level processes, bonding, and test capacity to support chiplet and HBM development.
Regional Analysis
The report divides China into six regions, namely the Yangtze River Delta, Beijing-Tianjin-Hebei Region, Pearl River Delta, Central China, Western China, and Northeast China & Other Regions, with analysis of 15 provinces and municipalities and a group of other provinces. The analysis considers fab and OSAT locations, local toolmakers, provincial funding, and talent.The Yangtze River Delta is expected to be the largest regional market in 2026, as it has the densest cluster of fabs, toolmakers, and packaging companies in the country. Shanghai is the base of SMIC, China's largest foundry, and of toolmakers AMEC, ACM Research, and SMEE. Jiangsu has major packaging operations, including JCET Group, and fabs in Wuxi and Nanjing, Zhejiang is expanding power and specialty chip output, and ChangXin Memory Technologies makes DRAM in Hefei, Anhui. The Beijing-Tianjin-Hebei Region also holds a significant share, as Beijing is the base of NAURA, China's largest domestic toolmaker, and SMIC runs large 300 mm fabs in Beijing and Tianjin.
Central China is expected to grow at the highest CAGR during the forecast period, as Yangtze Memory Technologies in Wuhan, Hubei, is expanding 3D NAND production and, after its addition to the U.S. Entity List in December 2022, has become one of the largest users of domestic deposition, etch, and metrology tools, while Hunan and Henan are building silicon carbide and other power device capacity with provincial funding. The Pearl River Delta is expected to post strong growth, backed by Guangdong's large electronics and electric vehicle industries, SMIC's 300 mm fab in Shenzhen, specialty foundries in Guangzhou, and a new group of Shenzhen-based toolmakers. Western China, with packaging and power device operations in Chengdu and Chongqing and Samsung Electronics' NAND fab in Xi'an, and Northeast China, where SK hynix runs the Dalian NAND fab acquired from Intel, face added uncertainty after the U.S. decided to revoke validated end-user status for foreign memory makers' China fabs from the end of 2025.
Competitive Landscape
The report includes a detailed review of the competitive landscape, covering key growth strategies, competitive benchmarking, the competitive dashboard with industry leaders, market differentiators, vanguards, and emerging companies, and 2025 market share/rank analysis. Company profiles cover business overview, financial overview, product portfolio, China business, strategic developments, and SWOT analysis for both foreign and domestic Chinese equipment suppliers.Large global toolmakers compete with a fast-growing group of Chinese manufacturers, with foreign vendors keeping their lead in lithography, metrology, and many advanced process tools, while Chinese vendors are taking orders in etch, deposition, cleaning, CMP, thermal processing, and coat-and-develop steps, mostly for mature nodes. Suppliers compete on process performance, export compliance and licensing, uptime and reliability, service support, price, and security of supply. Overseas vendors are redirecting sales toward permitted tools and customers, while domestic vendors are widening their product ranges, raising R&D spending, and working closely with Chinese chipmakers with backing from state funds and the STAR Market.
Key companies profiled in the report include Applied Materials, Inc. (U.S.), Lam Research Corporation (U.S.), KLA Corporation (U.S.), ASML Holding N.V. (Netherlands), Tokyo Electron Limited (Japan), SCREEN Holdings Co., Ltd. (Japan), Hitachi High-Tech Corporation (Japan), Advantest Corporation (Japan), Teradyne, Inc. (U.S.), Kokusai Electric Corporation (Japan), NAURA Technology Group Co., Ltd. (China), Advanced Micro-Fabrication Equipment Inc. China (AMEC) (China), ACM Research, Inc. (China/U.S.), Piotech Inc. (China), Kingsemi Co., Ltd. (China), Hwatsing Technology Co., Ltd. (China), Shanghai Micro Electronics Equipment (Group) Co., Ltd. (China), and Hangzhou Changchuan Technology Co., Ltd. (China).
How This Report Helps
- Provides reliable market size estimates and forecasts for the China semiconductor equipment market through 2036.
- Explains how state funding, mature-node and memory capacity additions, and advanced packaging investment are shaping equipment demand.
- Assesses the effect of U.S., Dutch, and Japanese export controls, the post-stockpiling slowdown, and component dependence on the market.
- Tracks the localization of equipment by process step and the progress of domestic lithography, etch, deposition, and cleaning suppliers.
- Identifies high-growth opportunities across equipment type, supplier origin, application, technology node, wafer size, end user, and region.
- Compares foreign and domestic suppliers by product range, China exposure, and recent developments.
- Supports sales planning, localization strategy, partnership evaluation, investment, and market entry decisions for toolmakers, component suppliers, chipmakers, and investors.
Key Questions Answered
- How large is the China semiconductor equipment market today, and how will it develop through 2036 after the record years of 2024 and 2025?
- How are American, Dutch, and Japanese export rules changing what Chinese fabs can buy and from whom?
- What are the main drivers, restraints, opportunities, challenges, and trends shaping the market?
- How fast are domestic suppliers replacing foreign tools, and in which process steps?
- How far can domestic lithography developers close the gap with foreign suppliers?
- Which equipment type, application, technology node, wafer size, and end user segments will grow the fastest?
- Which regions and provinces of China offer the most attractive opportunities for equipment suppliers?
- Who are the leading foreign and domestic companies in the market, and how do they compare?
- What funding programs, fab projects, and strategic developments are shaping competition?
Table of Contents
1. Introduction
2. Research Methodology
4. Market Overview
5. China Semiconductor Equipment Market, by Equipment Type
6. China Semiconductor Equipment Market, by Supplier Origin
7. China Semiconductor Equipment Market, by Application
8. China Semiconductor Equipment Market, by Technology Node
9. China Semiconductor Equipment Market, by Wafer Size
10. China Semiconductor Equipment Market, by End User
11. China Semiconductor Equipment Market, by Region
12. Competitive Landscape
13. Company Profiles
14. Appendix
LIST OF TABLES
LIST OF FIGURES
Companies Mentioned
- Applied Materials, Inc.
- Lam Research Corporation
- KLA Corporation
- ASML Holding N.V.
- Tokyo Electron Limited
- SCREEN Holdings Co., Ltd.
- Hitachi High-Tech Corporation
- Advantest Corporation
- Teradyne, Inc.
- Kokusai Electric Corporation
- NAURA Technology Group Co., Ltd.
- Advanced Micro-Fabrication Equipment Inc. China
- ACM Research, Inc.
- Piotech Inc.
- Kingsemi Co., Ltd.
- Hwatsing Technology Co., Ltd.
- Shanghai Micro Electronics Equipment
- Hangzhou Changchuan Technology Co., Ltd.
