Global Semiconductor Equipment Sales Expected to Surpass $100 Billion for the First Time This Year

[Asia Economy Reporter Jeong Hyunjin] With the semiconductor boom this year, major companies have successively decided to make large-scale investments, leading to the global semiconductor manufacturing equipment market size expected to exceed $100 billion (approximately 118 trillion KRW) for the first time. This is interpreted as a result of all sectors in the semiconductor industry, including foundry (semiconductor contract manufacturing), memory semiconductors such as DRAM and NAND flash, securing equipment.

On the 13th, the Semiconductor Equipment and Materials International (SEMI) predicted that the total semiconductor manufacturing equipment sales this year would reach $103 billion, a 44.7% increase compared to the previous year. The semiconductor manufacturing equipment market, which recorded an all-time high of $71 billion last year, is expected to surpass $100 billion for the first time this year by renewing that record.

(Data provided by SEMI)

Ajit Manocha, Chairman of SEMI, said, "This is a unified and exceptional effort by the global semiconductor industry to expand production capacity to meet strong demand," adding, "We expect investments in digital infrastructure expansion driven by growth in various end markets to continue next year."

In detail, manufacturing equipment used in wafer fabs where semiconductor front-end processes occur, and in assembly, packaging, and testing factories where back-end processes occur, all contributed to market expansion. Various equipment used in wafer processing in wafer fabs is expected to record a historic high with sales reaching $88 billion this year, a 43.8% increase from the previous year. SEMI forecasted that this scale would increase by 12.4% to $99 billion next year, then slightly decrease to $98.4 billion in 2023.

The manufacturing equipment sales scale in the foundry and logic semiconductor sectors, which account for the largest share of wafer fabs, was $49.3 billion this year, a 50% increase from the previous year. Investment in manufacturing equipment in this sector is expected to increase by 17% next year compared to this year.

(Data provided by SEMI)

Equipment for manufacturing memory semiconductors such as DRAM and NAND flash also saw increased sales this year in line with strong demand growth. DRAM equipment sales are expected to increase by 52% this year, reaching $15.1 billion, while NAND manufacturing equipment is estimated to grow by 24% to $19.2 billion. SEMI expects DRAM and NAND manufacturing equipment to increase by 1% and 8% respectively next year, then slightly decline in 2023.

By country, China, South Korea, and Taiwan were identified as the top three countries that aggressively purchased semiconductor manufacturing equipment this year. SEMI forecasted that China would maintain the top position this year following last year, but Taiwan would take the number one spot in the next year and the year after.

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