China's semiconductor equipment firms expand as storage chip output, AI demand surge

Three Chinese semiconductor‑equipment companies announced major expansion plans in June 2026.  Zhongwei Micro (中微公司) completed its acquisition of CMP maker Hangzhou Zhonggui and secured a majority stake from the National Integrated Circuit Industry Investment Fund.  Tuojing Technology (拓荆科技) disclosed a plan to acquire Wuxi Shangji Semiconductor, a thin‑film deposition and etch equipment producer.  Huahai Qingke (华海清科) approved a 3.795‑billion‑yuan private placement to build a new R&D and manufacturing base in Shanghai.

The expansions are driven by three converging forces: (1) storage‑chip makers ChangXin Technology and Yangtze Memory ramping up production, creating huge equipment orders; (2) AI investments shifting demand toward mature‑process supporting chips, spurring capacity growth; and (3) domestic equipment gains from years of validation now converting into bulk orders.  China’s semiconductor‑equipment spending is forecast at $49.3 billion in 2025, the world’s largest, with domestic firms’ market share rising from 16 % to 21 % this year.  Correspondingly, imports of semiconductor equipment fell 12 % YoY in the first five months of 2026, while domestic output, especially in etch and thin‑film deposition, surged.

These developments indicate a rapid move toward self‑sufficiency in key chip‑manufacturing steps, with Chinese firms now supplying a growing share of the equipment needed for DRAM and NAND production lines.