The rapid expansion of AI-driven data storage systems, coupled with delays in the delivery of foreign equipment ranging from 12 to 24 months, creates a unique ten-year window of opportunity for Chinese semiconductor equipment manufacturers, allowing them to capture both domestic and export markets.
The global semiconductor equipment market is entering a supercycle phase, driven by the demand for AI computing power for memory chips. Furthermore, equipment delivery times abroad have increased to 12–24 months, providing an unprecedented chance for domestic Chinese manufacturers to seize market share.
According to SEMI data, the global semiconductor equipment market volume is projected to grow from USD 116.6 billion in 2024 to USD 155.6 billion by 2027, with test equipment showing the fastest Compound Annual Growth Rate (CAGR) at 21.1%.
AI-based servers require 8–10 times more DRAM capacity and three times more NAND flash memory compared to traditional servers. Samsung, SK Hynix, and Micron have shifted 80–90% of advanced capacity to HBM production, structurally limiting the supply of general-purpose memory. Inventories held by these three major producers amount to only 4 weeks, significantly below a healthy range of 8–12 weeks. This shortage has led to quarterly contract price increases for DDR5 by 58–63% and a rise in NAND flash prices by 70–75% in the second quarter of 2026.
On the supply side, major equipment suppliers such as Applied Materials and Tokyo Electron are facing shortages of key components and capacity saturation, extending equipment delivery times for memory production to 12–24 months. This bottleneck has created a dual opportunity for Chinese companies: replacing domestic demand at home and expanding exports abroad.
China's two largest memory manufacturers, CXMT and YMTC, plan joint equipment purchases worth 55–63 billion yuan in 2026, favoring local suppliers. Chinese semiconductor equipment companies have demonstrated confident growth in orders. Contract commitments for AMEC grew from 590 million yuan in 2020 to 3.04 billion in 2025, while Piotech increased its contract commitments from 130 million to 4.85 billion over the same period. R&D spending in the industry reached 18.58 billion yuan in 2025, five times higher than in 2020. Several companies maintain high levels of contract commitments at the beginning of 2026, indicating strong future order volumes.
The most promising segments for domestic substitution are final testing equipment and metrology/inspection equipment, as they currently have the lowest localization rates but possess the highest growth elasticity. Global market dynamics also open up export opportunities in the Korean and Southeast Asian markets as a second vector of growth. Nevertheless, risks remain related to capital expenditure cyclicity and the time required to validate new equipment before its implementation into clients' production lines.
According to a study by The Beijing News, Chinese enterprises expanding internationally have reached a new stage of development. They are no longer limited to simply shipping finished goods but are exporting entire operating systems that include research and development, supply chains, branding, service capabilities, and local management.
This report analyzed the activities of three companies from different industries: XAG, specializing in agricultural drones; TCL, operating in consumer electronics; and ADO, manufacturing electric bicycles. In all cases, a common trend of deep involvement in local markets was identified.
XAG, a leader in agricultural drone manufacturing, initially faced skepticism from American farmers accustomed to large manned aircraft capable of spraying thousands of acres in one flight. However, because XAG drones provided an 85 kg payload at a cost of only 1% compared to a 400 kg helicopter, American farmers began modifying their fields to optimize for drone operation. As co-founder of XAG, Gong Jiaxin, noted, farmers are now planning plantings based on flight paths rather than rows, accepting a slight reduction in planting area for increased overall yield.
TCL has transformed from a low-margin television manufacturer into a premium brand through technological leadership. Between 2021 and 2025, TCL's revenue from television sales doubled—from 30 billion yuan to nearly 60 billion yuan. Furthermore, 70% of the 30 million annual televisions sold are exported overseas. The company invested in the Panggu Laboratory, led by 20 doctoral scientists, to develop Mini LED technology, which includes IC chips, packaging, dosing, and multi-zone control algorithms. TCL's global brand index grew from approximately 60 in 2020 to over 100, reflecting the shift from selling televisions with a profit of 1.5 yuan per unit to competing with leading international brands through superior performance and competitive pricing.
ADO, an electric bicycle brand that has been around for five years and is based in Huizhou, has opened over 400 offline stores abroad, with presences in Germany, Japan, and Vietnam. Instead of competing solely on price, ADO focuses on unique design and localized service. The company supports local teams and online communities in Europe and Japan, boasting 13,000 members in its cycling groups. ADO Vice President of Sales Zhu Binling spends half the year in Germany studying the needs of local users. The new overseas approach is defined not by containers on cargo ships, but by integrating Chinese R&D, supply chain, branding, and service competencies directly into global local markets.
China is traditionally considered the world leader in the mining and processing of rare earth elements (REEs). Globally, about 70% of the mining and approximately 90% of the processing of these elements takes place in China. However, a new study has revealed another side of this coin.
According to the study, while China leads in raw material extraction and processing, it lags behind the US and Japan in the most critical and expensive technologies related to rare earth elements. Data from the South China Morning Post in Hong Kong indicates that many key patents concerning advanced functional materials made from rare earth elements remain owned by Japan and America.
Rare earth elements are critically important not only for business but also for strategic and defense sectors, as they are used in many high-tech devices, including radars, sonar systems, missiles, fighters, as well as smartphones, satellites, and electric vehicles.
The research showed that over 80% of patents related to permanent magnets, catalysts, luminescent, and polishing materials made from processed rare earth elements are registered worldwide. In this context, Japan holds a leading position in permanent magnet technology, while the US dominates in catalyst, luminescent, and polishing material technologies.
It was found that China has achieved advantages only in limited areas. It still lags behind Japan and the US in several crucial manufacturing processes and material systems. This means that China has not yet been able to fully transform its raw material advantage into high-value technologies. Despite China filing a large number of patents, the international influence of its high value-added patents is less than that of its competitors. Experts emphasize that to achieve complete global leadership in the rare earth element sector, China must not only dominate mining and processing but also catch up with the US and Japan in advanced innovation and technology.
The Monday edition of Olhar Digital News presented various significant events. Among them were the creation of the world's first fully robot-operated hotel, major corporate deals, and climatic phenomena.
Pudu Robotics announced the development of the world's first hotel that will function exclusively through robots. This project is planned for the Western Artificial Island in Guangdong province. The official opening of the hotel is scheduled for 2027, but before that, the structure will undergo a testing phase at the end of this year, when some rooms and services will be available to the public.
Rocket Lab entered into an agreement to acquire Iridium Communications, a company specializing in satellite telephony. The value of this operation is estimated at 8 billion US dollars (equivalent to approximately 41 billion Brazilian reais) and includes payments in both cash and stock. The completion of the deal depends on obtaining the necessary regulatory approvals and is expected by 2027.
Europe is experiencing a historic heatwave, which is placing a serious strain on hospitals, energy grids, and municipal services in many countries, leading to the temporary closure of schools. According to the World Health Organization, at least 1300 deaths caused by extreme temperatures have been recorded on the continent since June 21.
In Southern Brazil, as well as in the states of Rio Grande do Sul, Santa Catarina, and Paraná, rainfall is forecast due to the formation of El Niño, which could reach double or even triple the average historical volume for the entire month over several days in July. This warning is valid from late June to early July.
Furthermore, China plans to expand its Tiangong space station, increasing the number of its modules from three to six during further stages of the program. This initiative comes against the backdrop of the approaching end of the International Space Station's operations, scheduled for the next decade.
