Last Year Semiconductor Equipment Spending Declined... China Share Largest at 34%

SEMI Announces Semiconductor Equipment Statistics Report

Last year, global semiconductor equipment spending slightly decreased compared to the previous year, with China having the largest expenditure.

The Semiconductor Equipment and Materials International (SEMI) announced on the 16th that global semiconductor equipment spending reached $106.3 billion last year. This represents a 1.3% decrease from the previous year's record high of $107.6 billion.

China, South Korea, and Taiwan accounted for 72% of the total spending last year. Among them, China's semiconductor equipment expenditure increased by 29% year-on-year to $36.6 billion, representing the largest share at 34.45% of the total spending.

South Korea ranked second with $19.94 billion, down 7% due to weak demand and inventory adjustments in the memory semiconductor market. Taiwan, which had experienced four consecutive years of growth, recorded $19.62 billion, a 27% decrease.

North America's semiconductor equipment spending rose 15% to $12.05 billion, influenced by the U.S. Chips Act. Japan's spending was $7.93 billion, down 5% from the previous year, while Europe's spending increased by 3% to $6.46 billion.

Ajit Manocha, CEO of SEMI, explained, "Although global equipment spending slightly declined last year, the semiconductor industry will remain strong due to strategic investments that promote growth in key regions," adding, "especially last year, the situation was better than most industry stakeholders had anticipated."

By sector, wafer equipment spending increased by 1% last year. Spending in other front-end sectors rose by 10%. Packaging and assembly equipment spending, which was weak in 2022, decreased by 30% last year, and test equipment spending also fell by 17%.