China's $25B Chipmaking Investments Surpass US, South Korea Combined

China invested $25 billion in semiconductor equipment in the first half of 2024, surpassing the combined spending of the US, Taiwan, and South Korea. This massive investment aims for semiconductor independence, potentially impacting global chipmakers like Nvidia and ASML.

Despite US-led sanctions, China remains a major buyer of semiconductors, with Nvidia's China sales up 33.8% YoY to $3.7 billion. However, the global push for domestic chip production might challenge companies heavily reliant on Chinese sales.

ASML's China revenue accounted for 49% of sales in the last two quarters, highlighting the significant exposure of some firms to the Chinese market.