China’s chip investment falls in first half of 2025 while equipment funding surges: report
The change reflects the country’s efforts to establish a self-sufficient supply chain, according to research firm CINNO
In contrast, investment in semiconductor equipment surged more than 53 per cent from the same period last year, highlighting the country’s efforts to establish a self-sufficient supply chain.
Wafer manufacturing accounted for the largest share of semiconductor investment at 51 per cent.
Wafers are thin discs of highly purified silicon that serve as the foundation for chip production, providing a smooth, clean surface where intricate electronic circuits are constructed through a series of precise processes. Once the circuits are completed, the wafers are diced into individual chips used in devices such as smartphones, computers and other electronics.
Of the remaining investment, nearly 19 per cent was directed towards chip design, while 9 per cent was allocated for packaging and testing. These categories experienced declines of about 24 per cent and 28 per cent, respectively, owing to weak consumer demand for electronics and disruptions in the international supply chain.