According to the Nikkei website on April 14, global sales of semiconductor manufacturing equipment rose 19 percent to an all-time high of about $71.2 billion in 2020, according to data released by the International Semiconductor Industry Association (SEMI) on April 14. The Chinese mainland, which is promoting the localization of semiconductors, became the largest market for the first time. The mainland's presence has increased amid a growing shortage of semiconductors. On the other hand, the rivalry around semiconductors is also growing.

Sales of equipment in the Chinese mainland rose 39 percent from a year earlier to $18.72 billion, the report said. Due to the popularity of the high-speed communication standard 5G and the home demand caused by the COVID-19, semiconductor contract manufacturers and other enterprises are investing heavily.

The report pointed out that in 2020, SMIC and other companies became the target of sanctions by the US government, but the momentum of the development of Chinese mainland enterprises has not weakened. SMIC has mooted plans to invest $7.6bn in a new factory in Beijing with China's sovereign wealth fund. Other contract manufacturers and memory companies also plan to invest aggressively.

According to the report, the severe semiconductor shortage worldwide has also become the "east wind" of semiconductor production in the Chinese mainland. In the semiconductor sector for home appliances and cars, many companies delegate production to mainland China. Statistics from the Semiconductor Industry Association (SIA) show that the Chinese mainland will account for 15% of the world's semiconductor manufacturing capacity in 2020. Although it lags behind in cutting-edge semiconductor technology, it is steadily improving its strength.

The report says the United States has a sense of crisis over the situation. The US has turned to producing more semiconductors at home amid the growing importance of semiconductors in areas such as 5G and artificial intelligence (AI). The Biden administration signed an executive order in February to restructure the supply chain for vital components such as semiconductors, and proposed legislation to provide $50 billion in subsidies for domestic production of semiconductors.

Intel, the US semiconductor company, unveiled plans in March to invest $20bn in a new plant in the western US state of Arizona. Intel is also moving into contract manufacturing to beef up production in the U.S.

Taiwan, which ranks second in the equipment market, reported sales of $17.15 billion in 2020, up slightly from the previous year. Investment in foundry continued to be strong after 2019. Taiwan Semiconductor Manufacturing (TSMC), the world's largest contract semiconductor manufacturer, plans to invest a record $28bn in equipment in 2021.

South Korea, in third place, saw device sales rise 61% from a year earlier to $16.08 billion, driven by growing demand for memory. South Korea's Samsung Electronics' semiconductor unit is expected to invest more than 3 trillion yen in equipment for the first time in 2021.