In recent years, many countries have stepped up efforts to develop their semiconductor equipment industries in order to ensure competitiveness in the global semiconductor value chain. The upstream semiconductor equipment market is becoming increasingly competitive, and China and Russia are making remarkable progress.
Rapid growth in semiconductor device development in China
The major players in the global semiconductor equipment market are primarily located in the United States, the Netherlands, Japan, and South Korea, where they maintain dominance in key areas such as lithography, etching, and vapor deposition. In recent years, due to factory expansion and localization efforts, Chinese semiconductor equipment companies have increased R&D investment and made remarkable progress.
Although China still faces a large gap in high-end lithography equipment, especially EUV lithography equipment, it has made progress in areas such as etching, CVD, PVD, packaging and inspection equipment, and is gradually gaining market share and domestic substitution. is in progress.
(Photo provided by DRAMeXchange)
Warning from China’s semiconductor equipment market
As 2024 draws to a close, there are signs of potential challenges for China’s semiconductor equipment market. According to data from the Semiconductor Equipment and Materials Institute International (SEMI), “China’s semiconductor equipment purchases in 2024 are expected to exceed $40 billion for the first time, reaching a record high. Once things normalize, the market could decline.”
Industry experts believe the 2024 peak is due to factors such as accelerated localization, increased demand for advanced processes, construction of new factories, and security concerns in global supply chains. However, once these production lines are up and running, equipment demand is expected to stabilize and the industry may no longer experience such intensive purchasing peaks.
Despite the possibility of short-term economic downturn, the long-term outlook remains optimistic. Due to the continuous growth of China’s semiconductor industry, technological advancements, and continued localization efforts, China’s semiconductor equipment market is expected to maintain steady growth, especially driven by emerging applications in 5G, AI, and automotive electronics. It is expected.
Russia accelerates development of domestically produced semiconductor equipment
According to CNews, Russia’s Ministry of Industry and Trade has started developing equipment to manufacture 200mm wafers used for chip production at technology nodes in the 180nm to 90nm range. The project has received funding of more than 1.7 billion rubles (approximately US$17.73 million) and is part of Russia’s efforts to establish a domestic lithography production line.
The commissioned semiconductor equipment will focus on chemical mechanical polishing (CMP) of dielectric layers such as silicon dioxide, tungsten, and copper.
Additionally, as CNews reported in October, the Russian government has allocated more than 240 billion rubles (US$2.54 billion) to support the development of domestic semiconductor manufacturing equipment, CAD tools, and raw materials. Russia aims to replace about 70% of imported semiconductor equipment and materials with domestically produced alternatives by 2030.
This ambitious plan was developed by the Ministry of Industry and Trade, Russia’s International Science and Technology Center (ISTC), and MIET (Moscow Institute of Electronic Technology), and is aimed at improving semiconductor manufacturing, including technical equipment, materials, chemicals, and technical equipment. covers various aspects of. CAD system. More than 50 organizations are involved, with 41 R&D projects already underway in 2024. Another 26 projects are scheduled to start in 2025, and another 43 in 2026, for a total of 110 projects.
Current status of the Russian semiconductor market
Major Russian chipmakers such as Angstrom and Micron are still limited to mature process nodes such as 65nm and 90nm and rely heavily on imported semiconductor manufacturing equipment, especially lithography systems. According to ISTC MIET Director Yakov Petrenko, Russia currently uses at least 400 different models of semiconductor manufacturing equipment, of which only 12% are produced domestically.
(Photo courtesy of Nowra)
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