Global semiconductor equipment sales fell 10.5% year-on-year in 2019... projected to rebound to $60.8 billion in 2020 and reach a record high of $66.8 billion in 2021.


The Semiconductor Equipment and Materials International (SEMI) announced on the 11th that global semiconductor equipment sales in 2019 recorded $57.6 billion, down about 10.5% from the all-time high of $64.4 billion in 2018.

Semiconductor equipment sales are projected to reach $60.8 billion in 2020, an increase of approximately 5.5% compared to this year, and then hit a record high of $66.8 billion in 2021. This is due to increased investment in sub-10nm equipment for foundry and logic semiconductor production by major semiconductor companies.

SEMI predicted that semiconductor equipment sales in 2019 would decline across all sectors. The wafer fab equipment sector, including wafer processing, fab facilities, and mask/reticle equipment, is expected to record sales of $49.9 billion, down 9% from the previous year; the assembly and packaging equipment sector is expected to record sales of $2.9 billion, down 26.1% from the previous year; and the semiconductor test equipment sector is expected to record sales of $4.8 billion, down 14% from the previous year.

Looking at the data by country, Taiwan is projected to surpass Korea to become the world's largest equipment market, recording a growth rate of 55.3% this year. Following this, North America is expected to see high growth of 33.6%. China is expected to maintain its second-place ranking for the second consecutive year, while Korea is projected to take third place due to a decline in investment.

SEMI predicted that investments in advanced logic semiconductors and foundries, new projects in China, and, though not large, investments in the memory sector would drive the recovery of the equipment market in 2020.

The region expected to show the most significant growth in equipment sales next year is Europe, projected to reach $3.3 billion, a 45.9% increase. Taiwan is expected to become the largest market for the second consecutive year, recording $15.6 billion in sales, while China and South Korea are forecast to achieve $14.9 billion and $10.3 billion, respectively. These estimates could rise further in 2020 if global economic conditions improve and trade tensions subside.

In 2021, all sectors of semiconductor equipment sales are expected to grow, and the recovery of memory consumption is projected to begin in earnest. China is expected to rise to first place with $16 billion, followed by South Korea in second place and Taiwan in third.