[THE INVESTOR] China is expected to overtake Korea to become the largest chip equipment market next year as dozens of new fab construction projects are underway in China, according to the latest report by California-based chip industry association SEMI.

According to SEMI, China’s chip equipment market is expected to rise 43 percent this year to reach US$11.8 billion. It will further increase 46 percent next year to reach US$17.3 billion, becoming the world’s largest chip equipment market. 

During the same period, Korea’s chip equipment market will see little change, with growing from US$17.95 billion this year to $17.96 billion next year.

The growth in China’s chip equipment market is being driven by 25 new fab construction projects in 16 regions, including Beijing and Tianjin, backed by strong government supports and growing demand for new businesses such as artificial intelligence, self-driving cars and robots.

According to SEMI, China will also top the rest of the world in fab investment in 2020 with more than US$20 billion in spending, driven by memory and foundry projects funded by both multinational -- including Samsung Electronics, SK Hynix and Intel -- and domestic companies.

Fab, or fabrication, is a factory where devices such as integrated circuits are manufactured.

By Shin Ji-hye/ The Korea Herald (shinjh@heraldcorp.com)