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The demand for semiconductor equipment is largely driven by the additional tools required to migrate chip designs to leading-edge nodes. With capacity-driven capex slowing down, semiconductor equipment demand may be unaffected if chipmakers are moving more aggressively to the leading-edge nodes.
China will further accelerate its semiconductor roadmap and capacity-building progress:
China has been actively expanding its semiconductor-production capacity and manufacturing facilities. There has been no significant disruption to China s semiconductor industry during the COVID-19 outbreak.
For example, Wuhan-based Yangtze Memory Technologies (YMTC) continued operations throughout the lockdown. China currently spends about $5bn on wafer-fab equipment and it can help to offset any potential capex cut from the large chipmakers if it believes its current progress justifies additional investmen ....

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