The global semiconductor equipment market in 2024 reached an all-time high due to a combination of factors including increased demand for AI and high-performance computing and changes in investment policies by country.

According to SEMI, an industry association representing the global electronics industry supply chain, semiconductor manufacturing equipment investment in 2024 is expected to reach $117.1 billion, up 10% from the previous year.

This year, the full-process equipment market showed continuous growth, with wafer processing equipment increasing by 9% and other equipment increasing by 5%.

In particular, expansion of investment in advanced and mature logic processes, advanced packaging, and high-bandwidth memory (HBM) production facilities was a major factor.

The post-processing equipment sector ended a two-year decline with a strong rebound. With the growing demand for AI and HBM and the increasing complexity of technology, packaging equipment investment increased by 25% year-over-year, and test equipment also increased by 20%.

“The semiconductor equipment market is expected to reach an all-time high in 2024,” said Ajit Manocha, CEO of SEMI. “The market is changing dynamically due to changes in regional investment trends and increasing demand for AI-based applications.”

By region, China, Korea, and Taiwan were the top three countries in terms of semiconductor equipment investment, and the investment from these three countries accounted for 74% of the total market.

China has become the world's largest semiconductor equipment market, with investment up 35 percent to $49.6 billion, driven by aggressive capacity expansion and government policies to foster the semiconductor industry.

South Korea rose 3% to $20.5 billion, driven by a stabilizing memory market and increasing demand for HBM.

Taiwan's output fell 16 percent to $16.6 billion, hit by slowing demand for new equipment.

In North America, semiconductor equipment investment increased 14% year-on-year to $13.7 billion, driven by strengthening domestic manufacturing capabilities and expanding investment in advanced technology nodes.

As semiconductor production expanded, especially in emerging countries, investment in other regions also increased by 15% to $4.2 billion.

On the other hand, Europe saw its equipment investment fall 25% to $4.9 billion due to economic uncertainty and slowing demand for automotive and industrial products. Japan also recorded a 1% decrease to $7.8 billion due to slowing growth in its major markets.