Taiwan dominated Asia’s semiconductor equipment landscape in the second quarter, with equipment billings surging 125% year-over-year to NT$8.77 billion ($8.77 billion), according to data from SEMI released Friday. The dramatic growth underscores the island’s central role in meeting global artificial intelligence chip production demands.
SEMI reported that global semiconductor equipment billings increased 24% year-over-year to $33.07 billion in the second quarter of 2025, with Japan, Korea and Taiwan — collectively known as JAKOTA — accounting for nearly half of worldwide purchases.
Taiwan’s exceptional performance reflects the equipment investments needed to support Taiwan Semiconductor Manufacturing Co.’s expanding production capacity. TSMC recently raised its 2025 revenue growth forecast to around 30% in dollar terms, supported by sustained AI chip demand, requiring substantial new manufacturing infrastructure.
Japan showed remarkable resilience with equipment billings reaching ¥2.68 billion ($2.68 billion), marking a 67% year-over-year increase and 23% quarterly growth. The recovery signals progress in the country’s semiconductor revitalization strategy, which includes partnerships with international chipmakers and substantial government backing for domestic production capabilities.
Korea presented a more complex picture, with equipment purchases totaling 5.91 trillion won ($5.91 billion) — up 31% annually but down 23% from the previous quarter. The mixed signals reflect the challenging environment facing Korean memory chip producers as they navigate fluctuating demand patterns and increased competition.
Industry executives attributed the strong quarterly performance to leading-edge logic and advanced high bandwidth memory applications, along with increased shipments to Asia. The data suggests equipment suppliers are prioritizing capacity expansion for AI-related semiconductors over traditional consumer applications.
The divergent performance among JAKOTA nations highlights how AI’s transformative impact is creating winners and losers even within Asia’s semiconductor powerhouse region. While Taiwan benefits from its foundry model serving AI chip designers, traditional memory producers face more volatile demand cycles.
Equipment billings serve as a leading indicator for future chip production capacity, suggesting Taiwan’s dominance in advanced semiconductors may continue expanding through 2025.
