Taiwan leads in semiconductor equipment spending

2014-12-16

Equipment spending by Taiwan’s semiconductor industry in 2015 will top the world for five years in a row, according to U.S.-based industry association Semiconductor Equipment and Materials International Dec. 8.

In the latest SEMI survey among the world’s major markets, sales of semiconductor equipment in Taiwan are expected to reach US$9.63 billion this year, or 25.36 percent of the global total, followed by North America at US$8.31 billion and South Korea at US$6.41 billion.

The country’s lead will widen further next year with the figure projected to surge 28.14 percent to US$12.34 billion, or 28.2 percent of the combined total. South Korea will come in second at US$8.01 billion, closely tailed by North America at US$7.5 billion.

According to SEMI Taiwan President Terry Tsao, after two years of declining spending, fabs around the world are ramping up their capacity, with global sales of semiconductor equipment set to increase 19.3 percent year-on-year to US$37.97 billion in 2014, before picking up another 15.2 percent next year.

The aggressive capacity expansion by Taiwan firms, including Inotera Memories Inc. and Taiwan Semiconductor Manufacturing Co. Ltd., is a major contributor to this spending spree, he said.

“Such robust investment by Taiwan’s chip makers, foundries and packaging and testing service providers will continue to strengthen the local sector’s leading position in the global supply chain,” he added.

The strategy is paying dividends for the local sector in the form of rising exports. According to statistics by the Ministry of Finance, Taiwan’s semiconductor exports hit a record high of US$6.8 billion in October.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=225170&CtNode=413)