Semiconductor Capital Investment Rises for First Time in Three Years on AI Demand

TSMC, SK hynix, and Micron Expand Investments
Total Investment by Top 10 Companies Reaches 187 Trillion Won
SMIC Also Sets Record-High Investment

Driven by the artificial intelligence (AI) boom, major global semiconductor companies are expected to increase their capital investments for the first time in three years.

According to the Nikkei newspaper on August 5, a Nikkei Research survey found that the total capital investment of the top 10 semiconductor companies for the 2025 fiscal year (April 2025 to March 2026) is projected to reach $135 billion (approximately 187 trillion won), a 7% increase from the previous year. This will mark the first increase in semiconductor capital investment since 2022.

The companies leading this investment expansion are those producing advanced semiconductors for AI, such as TSMC, Micron, SK hynix, and SMIC. TSMC plans to invest up to $42 billion, a 30% increase from the previous year, and will continue to expand its plants in Japan, the United States, and Germany. Micron will increase its investment by 70% to $14 billion, and SMIC will invest a record-high $7.5 billion. SK hynix will also raise its investment to the highest level in three years.

In contrast, Intel plans to reduce its investment by 30% to $18 billion due to six consecutive quarters of losses. Samsung Electronics will increase investment in its new plant in Texas, United States, but reduce domestic investment, resulting in its total investment remaining similar to last year.

This recovery in investment is attributed to the demand for AI semiconductors. AMD has forecast that the AI semiconductor market will more than triple to $500 billion between 2025 and 2030. In contrast, the growth rate of the smartphone market is expected to remain in the low single digits.