Chinese Semiconductor Equipment Expert Calls for Industry Consolidation
Yin Zhiyao, a key figure in China's semiconductor equipment manufacturing sector, emphasized the need for industry consolidation as numerous domestic companies face global competition.
SHANGHAI – Yin Zhiyao, recognized as the "father of China's etching machines" and a leader at SMIC, urged Chinese semiconductor equipment manufacturers to consolidate to effectively compete on the global stage.
Speaking at the Shanghai Industrial Exposition, Yin Zhiyao likened the fragmented nature of China's numerous domestic semiconductor firms to the more consolidated landscape of US-based companies. He drew an analogy to naval warfare, stating that China's scattered "small boats" cannot defeat the enemy's "aircraft carriers and cruisers" without strategic unification.
Industry forecasts project significant growth. Yin Zhiyao highlighted that the global semiconductor equipment market has seen continuous expansion since 2010. He anticipates a 17% growth in 2025 compared to 2024, with a similar 17% increase expected for 2026 over 2025. SEMI further predicts a potential industry growth of up to 22% in 2027.
Estimates suggest that between 500 and 1000 semiconductor equipment manufacturers currently operate in China. Yin Zhiyao argued that this scattered approach is unsustainable, identifying industry consolidation as an inevitable trend. Earlier this week, Huawei also echoed calls for collaboration, stressing that no single company can solve all challenges alone.