Home General Global Semiconductor Industry To Spend $400 Billion On Chip-Making Equipment

Global Semiconductor Industry To Spend $400 Billion On Chip-Making Equipment

Semiconductor

Global semiconductor manufacturers are set to invest a record $400 billion on chip-making equipment between 2025 and 2027, according to a report by industry association SEMI. China, South Korea, and Taiwan are expected to lead the spending, driven by increasing demand for chips used in artificial intelligence (AI) and memory storage, as well as the ongoing U.S.-China trade tensions that have created a push for manufacturing capacity in new regions.

Surge In Spending Across Key Markets

In 2025 alone, spending on chip-making equipment is expected to rise by 24%, reaching $123 billion. Major equipment vendors such as the Netherlands’ ASML, and U.S. companies Applied Materials, KLA Corp and Lam Research, along with Japan’s Tokyo Electron, are likely to see increased demand for their products.

China is projected to remain the top spender in this period, investing more than $100 billion over three years, despite a slight decline from 2024 levels. This investment is primarily driven by China’s self-sufficiency policies aimed at reducing reliance on foreign suppliers amidst global trade pressures.

South Korea And Taiwan’s Key Contributions

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South Korea, home to memory chip giants Samsung and SK Hynix, is anticipated to spend $81 billion during this period. Taiwan, the headquarters of TSMC, the world’s largest contract chipmaker, will invest around $75 billion, as it expands production capabilities both domestically and in the U.S., Japan and Europe.

Other major investments include $63 billion in the Americas, $32 billion in Japan and $27 billion in Europe. SEMI projects that these regions will more than double their equipment spending by 2027, thanks to policy incentives aimed at securing semiconductor supplies.

(With inputs from Reuters)