Chinese made chip equipment creates another miracle: Teach people how to make chips - Understand chip equipment from the chip manufacturing process

When it comes to chip equipment, many people's first reaction is photolithography machines. However, as the "pearl" on the crown of modern technology, the high-precision equipment required to produce a chip is much more than imagined. Next, from the manufacturing process of chips and the domestic equipment demand, we can see how huge the market for chip equipment is.

Image: https://www.abnewswire.com/upload/2025/07/1f9f31d4a0000e2476c43e28b96d4642.jpg [https://mfmic.com.hk/]

The current global chip industry is showing a trend of recovery and structural growth, with China's market share accounting for nearly 30%. AI chips, storage chips, and automotive grade chips have become core growth points, but they face challenges such as technological bottlenecks, international sanctions, and ecological shortcomings. In the future, technological breakthroughs and domestic substitution will be key development directions.

Industry Status Analysis

Market recovery and growth.

The global semiconductor market will reach 166 billion US dollars in 2024, with a month on month growth of 10.7%, and China accounting for 30%. The demand for storage chips (DDR5/HBM), AI chips, and automotive grade chips is strong, but consumer electronics remains weak.

Chinese A-share semiconductor companies are expected to exceed 910 billion yuan in revenue in 2024, with a net profit growth of 37%, and a clear trend of concentration among top enterprises.

Technological breakthroughs and localization.

Innovative technologies such as RISC-V architecture and integrated storage and computing chips have become research and development priorities, but ecological construction lags behind.

International competition and sanctions. 10M04SCU169C7G [https://mfmic.com.hk/ALTERA/10M04SCU169C7G/]

Two

China is accelerating the synergy of the entire industry chain through policy support (such as the third phase of the Big Fund with 300 billion yuan), aiming for a self-sufficiency rate of 70% by 2025.

Three

1) The manufacturing process of chips

The complex equipment required for chip manufacturing is the most difficult and costly link in the chip industry chain. To become the brain of a technological device, a crystal garden needs to go through the following steps: oxidation, gel homogenization, exposure, development, etching, deposition, grinding, ion implantation, and annealing. Each step here requires high-precision machinery.

Therefore, in addition to the well-known lithography machine, chip equipment also includes etching, thin film deposition, measurement, cleaning and other equipment. Just like the leader of lithography machines is ASML from the Netherlands, these devices often have a corresponding leading enterprise behind them. Relying solely on a corresponding device can sustain an international large company, which shows how valuable the field of chip equipment is to explore

2) Domestic equipment demand, 3 times in 3 years!

With China becoming the country with the fastest growth rate in chip production in the past two years, the demand for chip equipment in China is also increasing day by day. At the same time, 80% of China's chip equipment is still occupied by overseas manufacturers, and domestic substitution still has a long way to go. But fortunately, the sales revenue of domestic chip equipment has tripled from 990 million US dollars to 3.3 billion US dollars in three years, far exceeding the market growth rate

From this, it can be seen that domestic independence is not a slogan in the field of chip equipment. We believe that with more and more research breakthroughs, domestic chip equipment will also have a broader market space

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