Korea Invests $7.3 Billion in Semiconductor Equipment in Q1, Surpassing China and Taiwan to Lead Globally

[Asia Economy Reporter Jeong Hyunjin] South Korea invested approximately $7.3 billion (about 8.1 trillion KRW) in semiconductor manufacturing equipment in the first quarter of this year, surpassing China, Taiwan, and other countries to lead the world in related investments. As Samsung Electronics and SK Hynix expanded their production facilities, equipment investments more than doubled compared to the first quarter of last year.

According to the Semiconductor Equipment and Materials International (SEMI) on the 3rd, global semiconductor manufacturing equipment sales in the first quarter of this year reached $23.57 billion, up 51% year-on-year and 21% quarter-on-quarter.

The largest region in terms of scale was South Korea. South Korea's semiconductor manufacturing equipment sales in the first quarter amounted to $7.31 billion, a 118% increase from $3.36 billion in the first quarter of last year. Compared to the previous quarter, the fourth quarter of last year, which was $4.02 billion, it also rose by 82%. Considering the total global sales, its share exceeded 30%.

(Data provided by SEMI)

The significant increase in South Korea's semiconductor equipment investment in the first quarter is attributed to the expansion of production facilities by Samsung Electronics and SK Hynix. Samsung Electronics is focusing its manufacturing equipment investments on the Pyeongtaek plant this year. In the case of SK Hynix, related investments increased following the completion of a new fab, M16, at the Icheon campus in February.

Following South Korea, China ranked second with semiconductor equipment investment of $5.96 billion in the first quarter, marking a 70% increase year-on-year and a 19% increase quarter-on-quarter. Taiwan ranked third with $5.71 billion, a 42% increase year-on-year.

On the other hand, Japan, North America, and Europe saw declines in semiconductor manufacturing equipment investments in the first quarter of this year. Japan recorded $1.66 billion, down 1% year-on-year and 14% quarter-on-quarter. North America fell 30% compared to a year ago and 15% from the previous quarter, totaling $1.34 billion. Europe also decreased by 9% compared to the first quarter of last year, amounting to $580 million.

This content was produced with the assistance of AI translation services.