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IBK Securities: China's Memory Expansion to Boost Local Equipment Supply Chain
Electronic Technology · Semiconductors · yonhap_finance · 2026-09-03
IBK Securities predicts that aggressive capacity expansion by Chinese memory makers and rising localization will drive structural growth for local equipment firms.
What Happened
Expansion of Chinese Memory Makers: Major Chinese memory semiconductor firms, including CXMT and YMTC, are accelerating capacity expansion and technological upgrades using funds raised through IPOs. These companies are investing heavily in new fabrication plants and the modernization of existing production lines to increase wafer output.
Acceleration of Equipment Localization: As U.S. export restrictions on semiconductor equipment continue to limit access to foreign technology, the push for domestic equipment production in China is intensifying. This trend is further supported by government policies aimed at achieving technological self-sufficiency in the semiconductor sector.
Rising Localization Rates: The localization rate for Wafer Fabrication Equipment (WFE) in China is projected to climb significantly, rising from 21% in 2025 to 43% by 2028. Analysts note that while the pace varies by process, meaningful progress has already been made in key front-end manufacturing areas.
Key Beneficiaries: Leading Chinese equipment manufacturers such as Naura Technology, AMEC, Piotech, and Hwatsing are expected to be the primary beneficiaries of this market shift. IBK Securities anticipates that these companies will maintain strong top-line growth as the domestic supply chain continues to mature.