The localization of China’s semiconductor equipment is accelerating. Which segments are being rapidly replaced? Where do the biggest gaps remain? Yole Group’s analysts decode this industry.
In Q2 2026, the Chinese mainland semiconductor equipment market reached a critical inflection point. As CXMT (ChangXin Memory Technologies) officially launched large-scale tenders, its planned capacity expansion of 50-60k wafers per year implies equipment procurement needs of up to US$5-6 billion. At the same time, YMTC (Yangtze Memory Technologies) initiated a tender for its Phase 2 fab’s process equipment pipeline installation project on May 14. The rare, synchronized capacity expansion by China’s two memory giants is directly driving increases in order volume for core equipment such as etching, thin-film deposition, and CMP.China’s semiconductor equipment market is reaching a pivotal moment. Driven by rising AI demand and simultaneous expansion plans from leading memory manufacturers, equipment procurement is accelerating across key technology segments.
In this article, Yole Group’ssemiconductor equipment expert, Merle Zhao, with contributors Paule Durin, Clara Grcevic, and Vishal Saroha, analyze the latest developments in China’s semiconductor equipment ecosystem. They assess localization progress across equipment categories, identify remaining technology gaps, and examine how the market is evolving from policy-driven growth to performance-driven competitiveness.
This analysis is based on a new report, Mainland China Semiconductor Equipment Industry 2026 and the coming report, 2026 edition, Status of the Wafer Fab Equipment Industry, both part of Yole Group’s semiconductor equipment collection. This collection offers strategic insights into semiconductor equipment technologies, manufacturing trends, and the global semiconductor value chain.
