Japan's semiconductor equipment exports to China achieved significant growth in April 2024, up 95.4% year-on-year, becoming the biggest driver of export growth in that month. This growth was driven by the significant contribution of the Chinese market to Japan's semiconductor equipment revenue, as well as the strong performance of Japanese semiconductor manufacturing equipment manufacturers.
China is the world's largest importer of semiconductor products and the world's largest exporter of semiconductor-related products. China itself is engaged in the production of semiconductor products, so it needs to import a large amount of semiconductor manufacturing equipment. The Chinese market has played a significant role in driving the revenue of Japanese semiconductor equipment. China accounts for a considerable proportion of the exports of some Japanese semiconductor equipment companies. For example, in fiscal 2023, the Chinese market accounted for more than 44% of Tokyo Electron's overseas net sales. In April 2024, Japan's semiconductor equipment exports to China surged by 95.4% year-on-year, a significant increase that not only highlights the strong demand for semiconductor equipment in the Chinese market.
Figure:Japan's semiconductor equipment exports to China in April surged
As a major player in the global semiconductor industry, Japan's equipment manufacturers such as Tokyo Electron and Screen Holdings both achieved significant growth in fiscal 2023. In fiscal 2023, TEP's net sales increased by 10.2% year-on-year, and overseas net sales increased by 11.0%, with the Chinese market accounting for more than 44% of the total. Screen Holdings' revenue in fiscal 2023 increased by 9.6% year-on-year, and revenue in the Chinese market soared by 111% year-on-year, and the proportion of revenue rose from 21% in 2022 to 39%, becoming the leader in all markets.
China's demand for semiconductor equipment has grown, driven by domestic investment in mature processes and a resurgence in DRAM investment. With China's continuous investment and technological innovation in the semiconductor industry, the chip front-end process manufacturing equipment (fab equipment, WFE) market is expected to grow by about 5% year-on-year in 2024. Ju Long, global vice president and president of SEMI China, said that China's demand for semiconductor equipment and materials will continue to maintain strong momentum.
