Global Semiconductor Equipment Market Projected at $55.9 Billion in 2017

The Semiconductor Equipment and Materials International (SEMI) announced global semiconductor equipment shipments for 2017 at SEMICON Japan. Global semiconductor equipment sales in 2017 are projected at $55.9 billion, representing a 35.6% increase from the previous high of $47.7 billion achieved in 2000. For 2018, sales are expected to reach $60.1 billion, 7.5% higher than 2017, suggesting another record will be broken following 2017.

SEMI forecasts that wafer processing equipment will increase 37.5% to $45.0 billion in 2017, while other front-end equipment such as fab facilities, wafer manufacturing, masks and reticles will increase 45.8% to $2.6 billion. Assembly and packaging equipment is projected to increase 25.8% to $3.8 billion, and test equipment is expected to increase 22% to $4.5 billion.

South Korea is expected to surpass Taiwan, which held the top position for five consecutive years, and record the highest regional annual sales for the first time. The South Korean market showed the largest growth rate at 132.6% compared to the previous year, followed by Europe at 57.2% and Japan at 29.9%. Excluding other regions (primarily Southeast Asia), all regions are expected to show sales growth, with rankings expected to be South Korea, Taiwan, China, Japan, North America, Europe, and other regions in order of equipment sales volume.

South Korea is expected to maintain its position as the top region in 2018 with sales of $16.9 billion, with the top three expected to be South Korea, China, and Taiwan. China showed a growth rate of 17.5% in 2017 compared to 2016, but equipment sales in 2018 are projected to increase 61.4% to $11.3 billion, rising to the second-place region, and are expected to show the highest growth rate among all regions. Taiwan is projected to be slightly behind, with China narrowly ahead at just under $11.3 billion.