Investment Surged Significantly, Institutions Predict Accelerated Localization Rate in Semiconductor Industry

According to media reports, the latest report from the International Semiconductor Industry Association (SEMI) indicates that the global semiconductor manufacturing equipment shipment value reached $117.1 billion in 2024, a 10% increase compared to $106.3 billion in 2023. Among this, the sales of wafer processing equipment grew by 9%, and sales in other front-end segments increased by 5%. This growth was primarily driven by increased investments in capacity expansion for advanced logic, mature logic, advanced packaging, and high-bandwidth memory (HBM), as well as a significant rise in investments from China.

Dongwu Securities released a research report stating that in 2024, China's semiconductor equipment import value from the US was approximately 33.7 billion yuan, accounting for about 20% of the total import value. After China announced retaliatory tariffs, the localisation rate of semiconductor equipment is expected to further improve. For advanced processes, as domestic equipment producers continue to make breakthroughs and mature in technology and services, and the cost of imported equipment increases by more than 50%, the localisation rate of equipment is expected to accelerate. The report is optimistic about both front-end and back-end semiconductor equipment and parts producers.

According to the Cailian Press Theme Library, among the relevant publicly listed firms:

Huada Jiutian is a leading enterprise in domestic EDA, continuously building full-process tools for digital chips and wafer manufacturing. Additionally, the company plans to acquire Xinhe Semiconductor to expand its layout from chip to system-level design solutions.

Luwave Optoelectronics has semiconductor mask precision at the mainstream domestic level, achieving mass production of semiconductor masks for the 180nm process node and mastering core manufacturing technologies for 150nm/130nm process node semiconductor masks, meeting the application needs of integrated circuit chip manufacturing, advanced semiconductor chip packaging, and devices.