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Semiconductor equipment market to reach US$100 billion next year


Friday, July 16, 2021

The global semiconductor equipment market is forecast to expand to a record-high US$100 billion next year, with Taiwan regaining its top spender position as the COVID-19 pandemic accelerates digitization and boosts demand for chips, SEMI said yesterday.

That would represent annual growth of 4.93 percent from US$95.3 billion estimated this year after 34 percent year-on-year expansion, the global semiconductor trade association said in a report.

South Korea, Taiwan and China continue to lead the world in semiconductor equipment spending, SEMI said.

Following a significant rebound in investment by memorychip makers and foundries, South Korea would be the biggest semiconductor equipment investor this year, but Taiwan is expected to regain the top position next year, it said, without providing detailed figures.

“The growth is mostly driven by semiconductor companies’ investment in areas with long-term growth potential. That gives a boost to wafer fab and assembly and packaging equipment demand,” SEMI Taiwan president Terry Tsao (???) said in a statement.

Taiwan Semiconductor Manufacturing Co (TSMC, ???) is planning record-high capital spending of US$30 billion on new facilities and equipment this year to cope with strong demand for 5G applications and high performance computing.

TSMC, the world’s biggest contract chipmaker, has also said that it plans to spend US$100 billion over the next three years to expand capacity, and fund research and development.

The wafer fab equipment market, which makes up the biggest share of the global semiconductor equipment market, this year is forecast to expand 34 percent year-on-year to US$81.7 billion, which would be an all-time high, SEMI said.

The market is expected to grow 6 percent next year to US$86 billion, it said.

By segment, foundry and logic chipmakers’ investments in equipment are expected to increase 39 percent this year to US$45.7 billion, SEMI said, adding that investments are expected to grow another 8 percent to US$50 billion next year.

Advanced assembly and packaging equipment investment is expected to surge 56 percent to US$6.01 billion this year, then increase by another 6 percent next year to US$6.39 billion, it said.

By: DocMemory
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