Record $400 Billion Investment in Semiconductor Equipment by 2027
Semiconductor manufacturers are projected to spend a record $400 billion on chip-making equipment by 2027, led by China, South Korea, and Taiwan. Major factors include increased demand for AI chips and geopolitical tensions between the U.S. and China. Significant investments will also be made by key equipment suppliers like ASML and Applied Materials.
- Country:
- Netherlands
According to the semiconductor industry association SEMI, manufacturers will invest an unprecedented $400 billion in chip-making equipment between 2025 and 2027. This surge is driven by rising demand for excess capacity and AI chips amid escalating U.S.-China trade tensions, with China, South Korea, and Taiwan leading the charge.
SEMI's report indicated that equipment spending would rise by 24% to $123 billion in 2025. Among the key suppliers are ASML from the Netherlands, U.S.-based Applied Materials, KLA Corp, Lam Research, and Tokyo Electron from Japan.
"China is projected to maintain its position as the top spending region, investing over $100 billion in the next three years due to its national self-sufficiency policies," SEMI noted. South Korea, home to memory chip giants Samsung and SK Hynix, is expected to spend $81 billion, while Taiwan, home to leading contract chipmaker TSMC, will invest $75 billion. TSMC is also expanding its facilities in the U.S., Japan, and Europe.
The Americas, Japan, and Europe are also poised to see significant growth, with spending projected at $63 billion, $32 billion, and $27 billion respectively. "These regions are expected to more than double their equipment investment by 2027 compared to 2024, thanks to policy incentives aimed at addressing semiconductor supply concerns," SEMI added.
(With inputs from agencies.)
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