Since the beginning of the 21st century, China has become the world's largest chip market, consuming nearly one-third of the world's chips. At the same time, China is also the largest importer of chips, with an annual chip import volume of more than 300 billion US dollars, and even more than 400 billion US dollars. In view of this, in order to reduce its dependence on imported chips, China has increased its efforts to improve the self-sufficiency rate of chips and strive to increase independent production. To achieve independent production of chips, a large number of them are inseparableSemiconductorsEquipment, however at present worldwideSemiconductorsThe equipment market is basically dominated by the United States, Japan, the Netherlands, etcState monopoly。Therefore, China has bought these foreign countries in large quantities over the yearsSemiconductorsEquipment, naturally, has also brought a bumper harvest to these equipment manufacturers. According to the data, the top five in the world in 2023SemiconductorsEquipment manufacturers will make huge profits from the Chinese market.
As the world's largest chip market, China's demand has exceeded that of any other country. China is not only the world's main consumer of chips, but also imports a staggering amount of chips every year. In order to reduce its dependence on imported chips, China has actively promoted the improvement of chip self-sufficiency and strived to increase local production and R&D of chips. withChinese chipsThe rapid development of the industry, rightSemiconductorsThe demand for equipment has also increased dramatically. However, due to the globalSemiconductorsThe monopoly phenomenon of the equipment industry, China has to import a large number of these equipment. Thus, the Chinese market becameSemiconductorsA popular target for equipment manufacturers to enter.
First, let's take a lookLithography machineGiantsasml。The revenue contribution from the Chinese mainland market increased from 14% in 2022 to 29% in 2023. This means that the Chinese market has contributedasmlNearly one-third of revenue. For the United StatesSemiconductorsFor equipment giant Applied Materials, the Chinese market contributed as much as 44% in the fourth quarter, accounting for almost half of its revenue. And for the whole of 2023, the Chinese market contributed 27% to Applied Materials' revenue, a record high. Then there is the United StateslamresearchThe Chinese mainland market accounted for 48% of revenue in the third quarter and more than 40% in the fourth quarter. China is expected to account for more than 35% of the year's revenue. Look at the American oneklacoRP, based on its quarterly revenue** ended September 30, 2023, China contributed 43% of the company's revenue, the highest ever. The best in JapanSemiconductorsEquipment manufacturersTokyo ElectrontokyoelectronAccording to the revenue** situation, the Chinese market contributed about 40% of the revenue in the first quarter, and in the second and fourth quarters, this proportion continued to rise, and for the whole year, China contributed about 44% of the company's revenue. It can be said that in 2023, theseSemiconductorsEquipment manufacturers are frantically making money from the Chinese market.
China, as the world's largest chip market, has a huge and fast-growing demand, which has attracted the worldSemiconductorsThere is a great deal of interest from the equipment giants. Lithography machineGiantsasmlis one of them. The Chinese market contributed 29% of revenue in 2023, up from 14% in 2022, nearly one-third of the market share. This huge contribution ratio proves that the Chinese market is inasmlAn important position in economic benefits. Applied Materials is AmericanSemiconductorsEquipment giants, their contribution to the Chinese market is more prominent, especially in the fourth quarter of 2023, the Chinese market accounted for 44% of revenue. For the whole of 2023, the Chinese market contributed 27% to Applied's total revenue, a record high. Also from the United StateslamresearchThe contribution to the Chinese market is also significant. The Chinese mainland market accounted for 48% of revenue in the third quarter and more than 40% in the fourth quarter. It is expected that throughout the year, the Chinese market will be rightlamresearchThe contribution will be more than 35%. In addition,klacoRP is also a high-income earner in the Chinese market. According to revenue data for the quarter ended September 30, 2023, China contributed 43% of the company's revenue, the highest ever. In addition, Japan is the most powerfulSemiconductorsEquipment manufacturersTokyo ElectrontokyoelectronRevenue in the Chinese market should not be ignored. The Chinese market accounted for about 40% of revenue in the first quarter, and this proportion continued to increase in the second and fourth quarters. For the whole of 2023, the Chinese market will contribute about 44% of the company's revenue. It can be seen that in 2023, theseSemiconductorsEquipment manufacturers are racing to get more profits from the Chinese market.
So, why theseSemiconductorsWill equipment manufacturers frantically make money from the Chinese market? There are two main reasons for this. On the one hand, China has actively promoted the development of the chip industry in recent years, and the construction of a large number of new chip production lines requires a large number of themSemiconductorsEquipment. Therefore, China has stepped up its effortsSemiconductorsThe procurement of equipment has become globalSemiconductorsAn important customer of the equipment manufacturer. On the other hand, with the changes in the international environment, as well as the strengthening of technology bans by various countries, China'sFabsPreparations have been made in advance. They buy some equipment in advance that may be limited to meet future challenges. This led to China 2023SemiconductorsThe explosive growth of the equipment market has attracted major players around the worldSemiconductorsEquipment manufacturers are scrambling to enter the Chinese market and maximize profits. However, these are expected in 2024 as technology bans continue to tighten and the Chinese market is saturated with purchasesSemiconductorsEquipment manufacturers are likely to be less profitable than in previous years.
Chinese chipsThe booming industry is driving theseSemiconductorsOne of the key factors for equipment manufacturers to make huge profits in the Chinese market. In recent years, in order to achieve chip self-sufficiency, China has increased investment in the chip industry and built a large number of new chip production lines. These new projects require not only a large number of chip manufacturing equipment, but also advanced onesSemiconductorsequipment to support the operation of the production line. In order to meet the needs of the domestic market, China actively procures all kinds of productsSemiconductorsequipment, become globalSemiconductorsOne of the important customers of equipment manufacturers. At the same time, China'sFabsWe are also preparing in advance for possible future technology bans. They procured some equipment that may be restricted in advance to ensure the continuity and stability of chip production. To a certain extent, these factors have contributed to the explosive growth of the Chinese market in 2023, attracting major global playersSemiconductorsEquipment manufacturers are pouring in. However, with the gradual tightening of technology bans and the saturation of purchases in the Chinese market, these are expected in 2024SemiconductorsEquipment manufacturers may face certain challenges in making profits in the Chinese market.
In short, in 2023, China will become the top five in the worldSemiconductorsAn important market for equipment manufacturers, this is the result of China's huge chip market demand and the development of the chip industry. China is not only the world's largest chip market, but also the largest chip importerSemiconductorsEquipment manufacturers bring huge business opportunities. MajorSemiconductorsEquipment manufacturers have seized the Chinese market to earn huge profits through the increase in volume and a high proportion of market share. However, with the tightening of technology bans and the saturation of purchases in the Chinese market, these are expected in 2024SemiconductorsThe prospect of making money in the Chinese market for equipment manufacturers may face some challenges.