Semiconductor industry has been identified by the Chinese government as a strategic investment area. With strong market recovery in first and second quarter, Chinese companies have started building new fabs to fuel the solid growth of chipmaking in China. As Hua Li, and SMIC are demonstrating, chip companies from other regions will follow.

It is forecasted that China chip equipment industry will grow by 138%, $2.24 billion in 2010 and 18%, $2.64 billion in 2011 while the materials grow by 18%, $3.86 billion in 2010 and 10%, $4.25 billion in 2011.