The International Semiconductor Equipment and Materials Association (SEMI) announced on the 22nd that this year’s semiconductor equipment investment will increase 6% year-on-year. More than $63.2 billion is expected to be invested this year, more than $59 billion last year. It is expected to hit a record high of $70 billion next year.
Wafer fab equipment (including wafer processing and fab facilities) is expected to grow 5% this year and 13% next year. This was driven by the expansion of investment in the memory semiconductor field and aggressive investment by China. Investments in the foundry and logic semiconductor sector are expected to increase by one digit next year.
The investment in DRAM and NAND flash this year is expected to surpass last year’s level. It is expected to increase by more than 20% next year. Investments in the assembly and packaging equipment sector are expected to rise 10% this year to $3.2 billion. It is expected to grow by 8% next year to $3.4 billion.
Test equipment investment is expected to increase by 13% this year to $5.7 billion. Growth is expected to continue next year.
By country, China, Taiwan, and Korea are expected to continue investing in semiconductor equipment. In particular, China is expected to lead the aggressive investment in the foundry and memory sector and take the top spot in this year and next year. Taiwan is expected to contract somewhat this year after the investment volume surged 68% compared to the previous year. It is expected to grow 10% next year.
Korea is expected to grow 30% next year, regaining investor sentiment in the memory semiconductor sector. The amount is $15.9 billion. It is expected to take second place with Taiwan.