The global semiconductor manufacturing equipment market is projected to reach a record high of $229.5 billion by 2028, driven by increased investment in AI infrastructure, advanced logic chips, and next-generation memory products like HBM, according to a SEMI report.
China's semiconductor equipment makers are under intense scrutiny as a stock rally attracts investors. Earnings results are expected to justify sharp re-ratings, with investors seeking proof of orders and revenue growth from memory-chip expansion and Beijing's self-reliance push.
South Korean semiconductor equipment stocks saw a significant surge on May 4th, with Tes, Wonik IPS, and PSK rising nearly 30%. This rally follows a pause in major players like Samsung Electronics and SK Hynix, indicating a rotation of funds into previously overlooked sectors, boosted by SK Group Chairman Chey Tae-won's expansion plans.
South Korean semiconductor equipment stocks are showing strong performance as funds flow into previously overlooked companies, particularly those involved in front-end processes. This rotation follows a slowdown in major players like Samsung Electronics and SK Hynix, with analysts citing upward revisions in earnings estimates for 2026-2027.
Amec, a leading Chinese semiconductor equipment maker founded in 2004, can produce advanced chipmaking tools, according to its chairman. The company has developed domestic alternatives for 17 categories of manufacturing equipment and gained significant global market share in its MOCVD business.
Advanced Micro-Fabrication Equipment (AMEC) chairman Gerald Yin Zhiyao stated that the company's plasma-etching technology is now an industry standard, adopted by international rivals and used by Taiwan Semiconductor Manufacturing Company. This development highlights China's push for semiconductor self-reliance amid US restrictions.
The Netherlands opposes the US Match Act's extraterritorial aspects, citing impacts on ASML's sales and servicing of lithography machines to China, amid broader US export controls hindering China's chipmaking advancements.
