The International Semiconductor Industry Association (SEMI) has projected a sharp rise in global spending on semiconductor manufacturing equipment, estimating that the total investment will reach a record US$400 billion between 2025 and 2027. This surge is expected to be led by major markets such as China, South Korea, and Taiwan.
According to the report, semiconductor equipment spending is forecasted to grow by 24% in 2025, hitting US$123 billion. This growth is fueled by escalating demand for AI and memory chips, as well as increased regional investments driven by Sino-US trade tensions. China, which is aggressively pursuing chip independence, is expected to remain the top spender, with investments exceeding US$100 billion over the next three years. However, SEMI notes that China’s spending will peak this year before gradually declining.
South Korea, home to giants like Samsung and SK Hynix, is forecast to invest US$81 billion, while Taiwan, dominated by TSMC, is set to spend US$75 billion. Other significant spending regions include the Americas, Japan, and Europe, where investments are also expected to grow, driven by government incentives aimed at securing semiconductor supply chains.
