Global Semiconductor Equipment Sales Expected to Surpass $100 Billion Next Year... Korea Becomes a Major Player

[Asia Economy Reporter Jeong Hyunjin] As global demand for semiconductors explodes, related equipment sales are expected to exceed $100 billion (approximately 114.5 trillion KRW) next year. Korean semiconductor companies such as Samsung Electronics and SK Hynix are pouring massive funds into equipment investments amid a ‘super cycle,’ playing a key role in expanding the global semiconductor equipment market.

On the 14th, the Semiconductor Equipment and Materials International (SEMI) forecasted that total sales of global semiconductor equipment companies will reach a record high of $101.31 billion next year. Global semiconductor equipment sales, which were recorded at $71.1 billion last year, are expected to increase by 34% this year to reach $95.3 billion.

Among semiconductor equipment, equipment used in factories producing semiconductors using wafers accounts for more than 80%. Wafer fab equipment is expected to reach a record high of $81.7 billion this year, a 34% increase from the previous year. SEMI projected an additional 6% growth next year, surpassing $86 billion. Sales of equipment used in semiconductor post-processing and other areas are also expected to expand by 83%, from $7.89 billion in 2019 to $14.42 billion in 2022.

Source=SEMI

Memory semiconductor markets led by domestic companies such as Samsung Electronics and SK Hynix are also increasing equipment investments. In the case of DRAM, related equipment sales are expected to exceed $14 billion this year, a 46% increase, while the NAND flash equipment market is expected to grow 13% this year and 9% next year, with related sales projected to reach $18.9 billion next year.

By region, Korea, Taiwan, and China were identified as the top locations for equipment investments this year. SEMI stated, "All regions are expected to expand equipment investments this year," adding, "Due to a solid recovery in memory semiconductors and strong investments in advanced processes and foundries, Korea is expected to rank first." In fact, Korea ranked first in semiconductor equipment investment in the first quarter of this year with $7.3 billion, surpassing China and Taiwan. This was due to Samsung Electronics’ investment in the Pyeongtaek plant and SK Hynix’s expansion of the M16 line production facilities. Both companies are also focusing on securing EUV equipment necessary for advanced processes.

Such equipment investments are expected to continue expanding for the time being. This is because many semiconductor companies, including Samsung Electronics, Intel, and TSMC, have already announced plans for factory expansions one after another. SEMI forecasted that 29 new semiconductor factories worldwide will begin construction by next year, and the scale of equipment investments for these will exceed $140 billion over the coming years.