China emerge as largest semiconductor equipment market with 29% y-o-y growth in 2023

Industry body SEMI reported worldwide sales of semiconductor manufacturing equipment slightly declined by 1.3% in 2023, reaching $106.3 billion compared to the record-setting $107.6 billion in 2022. Further findings shared by SEMI: China, Korea, and Taiwan, the top three regions in chip equipment spending, comprised 72% of the global equipment market. China maintained its position as the largest semiconductor equipment market, with investments increasing by 29% year-over-year to $36.6 billion. Equipment spending in Korea decreased by 7% to $19.9 billion, primarily due to softer demand and inventory corrections in the memory market. Taiwan experienced a 27% contraction in equipment sales to $19.6 billion after four consecutive years of growth. North America saw a 15% increase in annual semiconductor equipment investments, driven by CHIPS and Science Act investments, while Europe recorded a 3% increase. Sales to Japan and the Rest of the World decreased by 5% and 39%, respectively. Global sales of wafer processing equipment increased by 1% in 2023, while other front-end segment billings grew by 10%. Assembly and packaging equipment sales continued their decline, decreasing by 30% in 2023 after contracting in 2022. Total test equipment billings contracted by 17% year-over-year. “Despite a slight dip in global equipment sales, the semiconductor industry continues to show s...