China loses appetite for chipmaking equipment

China’s chipmakers will spend 6 percent YoY less on semiconductor manufacturing equipment, according to Techinsights analyst Boris Metodiev (via Reuters. The drop follows three years of growth, as Chinese firms rushed to increase capacity, particularly in mature-node manufacturing. Now, investment is slowing due to export controls and overcapacity.

Metodiev’s prediction lines up with comments from ASML’s management, which has signaled that sales to Chinese customers will return to a more normal level. In 2024, China’s share in the toolmaker’s system sales amounted to 41 percent (8.9 billion euros). That will slide back to about 20 percent, ASML has said.