It involves 18 projects to enter into construction in 2020, up from 15 this year, though some work could be delayed amid a cooling global economy and the U.S.-China trade war. The projections show how mainland China is swiftly starting to be a major force in semiconductor investment.

 

China, where Beijing is endorsing domestic self-sufficiency in memory and other chips, accounts for 11 of these projects, worth $24 billion. Taiwan, a hub for leading chip foundries such as for example Taiwan Semiconductor Manufacturing Co., is another heavy contributor to the total at virtually $13 billion. But weak memory prices are seen cutting investment in South Korea, home to industry giants like Samsung Electronics and SK Hynix. The country ranked as the main buyer of chipmaking equipment in 2018.

 

Chinese moves in semiconductors include plans by the country's second-largest mobile chipmaker, UNISOC Communications, to launch a 5G chipset in 2020 to catch up with global leaders such as U.S.-based Qualcomm. Huawei Technologies' chip arm, HiSilicon Technologies, seeks to have one ready as soon as this year. SEMI's projections cover facilities for preprocessing, such as circuit etching, which make up the bulk of chipmakers' capital investment.

 

The prediction includes a note of uncertainty. Eight of the 18 expected projects, totaling more than $14 billion, have a 'low probability of materializing,' the report says. Protracted trade friction between Washington and Beijing could slow chipmakers' appetite for investment if demand from tech companies falls. This is mostly true in China, where many of these projects are considered as less certain. Excluding those leaves just four probable projects valued at $9.6 billion.

 

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