Global Semiconductor Manufacturing Equipment Transactions Reach Record High of 29 Trillion KRW in 2Q... China Ranks First

[Asia Economy Reporter Jeong Hyunjin] The global semiconductor manufacturing equipment transaction value reached $24.9 billion (approximately 29 trillion KRW) in the second quarter of this year, setting a new all-time high. Despite U.S. sanctions, the Chinese government continues to invest in semiconductor advancement, leading China to surpass South Korea and reclaim the top spot as the largest purchaser of semiconductor equipment.

According to the Semiconductor Equipment and Materials International (SEMI) on the 8th, the global semiconductor manufacturing equipment transaction value in the second quarter of this year was $24.9 billion, a 48% increase compared to the same period last year. It also rose 5% compared to the previous quarter, setting a record high.

The country that purchased the most semiconductor manufacturing equipment was China. China's semiconductor manufacturing equipment investment in the second quarter was $8.22 billion, a 38% increase from the previous quarter. Compared to $4.59 billion in the second quarter of last year, it increased by 79%. This accounts for 33% of the total semiconductor manufacturing equipment transaction value.

Global Semiconductor Manufacturing Equipment Transaction Value. Unit: Billion USD. (Source: SEMI)

China's expansion of manufacturing equipment investment is interpreted as a result of the Chinese government's active support for the semiconductor industry. Based on this, SMIC, China's leading foundry (semiconductor contract manufacturing) company, recorded a nearly 400% surge in net profit in the second quarter of this year, showing strong performance, and its market share in the global foundry market expanded from 4.7% in the first quarter to 5.3% in the second quarter.

SMIC recently announced plans to build a new semiconductor factory with an investment exceeding 10 trillion KRW, supported by the Shanghai government, which is expected to increase orders for manufacturing equipment going forward. In March, SMIC also partnered with the Shenzhen government in Guangdong Province to build a semiconductor factory in Shenzhen.

Following China, South Korea ranked second in semiconductor manufacturing equipment investment in the second quarter with $6.62 billion. South Korea's investment scale exceeded $7 billion in the first quarter, ranking first globally, but it decreased by 9% in just one quarter. Compared to the same period last year, it increased by 48%.

Taiwan ranked third, with semiconductor manufacturing equipment investment of $5.04 billion, a 44% increase year-on-year but a 12% decrease quarter-on-quarter. Japan and the North American region recorded $1.77 billion and $1.68 billion respectively, increasing by 7% and 25% compared to the previous quarter. Europe also increased semiconductor manufacturing equipment investment by 54% year-on-year and 22% quarter-on-quarter to $710 million.

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