China is spending heavily on chip wafer fabs - Chi

China is spending heavily on chip wafer fabs - Chip equipment trade group SEMI expects 10 of the 19 chip wafer manufacturing plants to start construction in 2016 and 2017 to be based in China as Beijing backs an aggressive push (aided by M&A) to turn the Middle Kingdom into a semiconductor powerhouse and lower the dependence of local manufacturers on foreign chip suppliers.


This effort bodes well for chip equipment makers, who have been hurt by uneven capex from traditional Big 3 clients Intel (NASDAQ:INTC), TSMC (NYSE:TSM), and Samsung - Intel, in particular, has been spending cautiously as it deals with weak PC sales and extends the amount of time it takes between launching new manufacturing processes. Applied Materials (NASDAQ:AMAT) posted strong numbers last month, and takes many chip equipment peers higher with it.
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.....keeping in mind amount of control of REE and manmade island..........China seems to shooting to be The World Leader