Semiconductor Equipment Investment Hits Record High of 160 Trillion Won... China Tops Global Spending

Last year, global investment in semiconductor manufacturing equipment increased compared to the previous year, with a significant rise in packaging equipment investment driven by growing demand for high-bandwidth memory (HBM), which is considered a core memory for artificial intelligence (AI). China, which is rapidly expanding its semiconductor production capacity, solidified its position as the top country, accounting for more than 40% of the world's semiconductor equipment investment.

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According to the Semiconductor Equipment and Materials International (SEMI) on May 27, global investment in semiconductor manufacturing equipment reached an all-time high of $117.1 billion (about 160 trillion won) last year, marking a 10% increase from the previous year.

This growth is attributed to expanded investment in production facilities for advanced and mature logic processes, advanced packaging, and HBM, as well as large-scale investments by China. In the semiconductor front-end equipment market last year, wafer processing equipment and other equipment each saw increases of 9% and 5%, respectively. During the same period, the back-end equipment segment rebounded after two consecutive years of decline. As demand for AI and HBM and technological complexity increased, investment in packaging equipment rose by 25% year-on-year, while the test equipment segment also climbed by 20%.

By region, China, South Korea, and Taiwan ranked as the top three countries for semiconductor equipment investment. In particular, China recorded an investment of $49.6 billion (about 68 trillion won), a sharp 35% increase, driven by aggressive expansion of production capacity and government policies to foster its domestic semiconductor industry. South Korea saw a 3% rise to $20.5 billion (about 28 trillion won) due to stabilization in the memory market and increased demand for HBM. Taiwan, on the other hand, remained at $16.6 billion (about 23 trillion won), a 16% decrease, due to slowing demand for new facilities.

Ajit Manocha, CEO of SEMI, explained, "Last year's semiconductor equipment investment data reflects a dynamic market environment, showing changes in regional investment trends, the advancement of logic and memory technologies, and increasing demand for AI-based applications."

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