SEMI Reports Global Semiconductor Equipment Investment Up 10% Last Year
Both Front-End and Back-End Investments Increase
China, South Korea, and Taiwan Rank as Top Three Countries
China Invests 68 Trillion Won, South Korea 28 Trillion Won
Last year, global investment in semiconductor manufacturing equipment increased compared to the previous year, with a significant rise in packaging equipment investment driven by growing demand for high-bandwidth memory (HBM), which is considered a core memory for artificial intelligence (AI). China, which is rapidly expanding its semiconductor production capacity, solidified its position as the top country, accounting for more than 40% of the world's semiconductor equipment investment.
According to the Semiconductor Equipment and Materials International (SEMI) on May 27, global investment in semiconductor manufacturing equipment reached an all-time high of $117.1 billion (about 160 trillion won) last year, marking a 10% increase from the previous year.
This growth is attributed to expanded investment in production facilities for advanced and mature logic processes, advanced packaging, and HBM, as well as large-scale investments by China. In the semiconductor front-end equipment market last year, wafer processing equipment and other equipment each saw increases of 9% and 5%, respectively. During the same period, the back-end equipment segment rebounded after two consecutive years of decline. As demand for AI and HBM and technological complexity increased, investment in packaging equipment rose by 25% year-on-year, while the test equipment segment also climbed by 20%.
By region, China, South Korea, and Taiwan ranked as the top three countries for semiconductor equipment investment. In particular, China recorded an investment of $49.6 billion (about 68 trillion won), a sharp 35% increase, driven by aggressive expansion of production capacity and government policies to foster its domestic semiconductor industry. South Korea saw a 3% rise to $20.5 billion (about 28 trillion won) due to stabilization in the memory market and increased demand for HBM. Taiwan, on the other hand, remained at $16.6 billion (about 23 trillion won), a 16% decrease, due to slowing demand for new facilities.
Ajit Manocha, CEO of SEMI, explained, "Last year's semiconductor equipment investment data reflects a dynamic market environment, showing changes in regional investment trends, the advancement of logic and memory technologies, and increasing demand for AI-based applications."
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