Next year, global wafer equipment spending will soar. SEMI estimates that it will spend $400 billion in the next three years
The International Semiconductor Industry Association (SEMI) estimates that semiconductor manufacturers will spend $400 billion on 12 inch wafer fab manufacturing equipment between 2025 and 2027, setting a new record, with mainland China spending the most, followed by South Korea, and Taiwan third.
In addition to the regional development of semiconductor wafer fabs, the strong demand for AI chips in data centers and edge devices is driving the continuous growth of expenses.
On the 26th, SEMI released a report stating that global equipment spending for 12 inch wafer fabs is expected to increase by 4% to $99.3 billion this year, and by 24% to $123.2 billion in 2025, breaking through the $100 billion mark for the first time. It is expected to grow by 11% to $136.2 billion in 2026 and another 3% in 2027, reaching $140.8 billion. Between 2025 and 2027, the total expenditure will exceed 400 billion US dollars.
Chinese Mainland is expected to invest more than US $100 billion in the next three years, which will still be the largest exporter of 12 inch wafer factory equipment in the world. However, the report also said that Chinese Mainland's expenditure would gradually decline from a record US $45 billion this year to US $31 billion in 2027.
South Korea will spend a total of $81 billion over the next three years to consolidate its dominant position in the memory industry, including dynamic random access memory (DRAM), high bandwidth memory (HBM), and 3D storage flash memory (NAND Flash), ranking second.
Taiwan's equipment expenditure for 12 inch wafer fabs in the next three years will be 75 billion US dollars, ranking third.
The legal representative believes that TSMC (2330) will be the main engine driving up expenses, and TSMC's capital expenditure next year is expected to increase compared to this year, which is expected to be the second highest in previous years.
During the legal briefing in July this year, TSMC slightly raised the low range of capital expenditure for this year, estimated at $30 to $32 billion, mainly to support customer demand. The capital expenditure forecast range has slightly converged, from the original $28 to $32 billion to the $30 to $32 billion range.
The relevant statements are generally in line with market expectations, and TSMC has not raised its high benchmark, but has moved its low benchmark upwards.
Recently, there have been reports in the market that TSMC's capital expenditures will resume annual growth in 2025, due to higher than expected demand for advanced processes and reserved production capacity for the 2 nanometer customer base. It has been reported that TSMC continues to increase its research and development efforts in advanced processes such as 2 nanometers. The demand for 2 nanometers has exceeded expectations, and production capacity plans are rumored to be imported into Southern Taiwan. TSMC's capital expenditure in 2025 may reach a range of $32 billion to $36 billion, the second highest in history, with an annual increase of 12.5% to 14.3%. ASML and Applied Materials are the winners of this wave, and Taiwan's related cooperative factories are also benefiting.
On the 26th, SEMI released a report stating that global equipment spending for 12 inch wafer fabs is expected to increase by 4% to $99.3 billion this year, and by 24% to $123.2 billion in 2025, breaking through the $100 billion mark for the first time. It is expected to grow by 11% to $136.2 billion in 2026 and another 3% in 2027, reaching $140.8 billion. Between 2025 and 2027, the total expenditure will exceed 400 billion US dollars.
Chinese Mainland is expected to invest more than US $100 billion in the next three years, which will still be the largest exporter of 12 inch wafer factory equipment in the world. However, the report also said that Chinese Mainland's expenditure would gradually decline from a record US $45 billion this year to US $31 billion in 2027.
South Korea will spend a total of $81 billion over the next three years to consolidate its dominant position in the memory industry, including dynamic random access memory (DRAM), high bandwidth memory (HBM), and 3D storage flash memory (NAND Flash), ranking second.
Taiwan's equipment expenditure for 12 inch wafer fabs in the next three years will be 75 billion US dollars, ranking third.
The legal representative believes that TSMC (2330) will be the main engine driving up expenses, and TSMC's capital expenditure next year is expected to increase compared to this year, which is expected to be the second highest in previous years.
During the legal briefing in July this year, TSMC slightly raised the low range of capital expenditure for this year, estimated at $30 to $32 billion, mainly to support customer demand. The capital expenditure forecast range has slightly converged, from the original $28 to $32 billion to the $30 to $32 billion range.
The relevant statements are generally in line with market expectations, and TSMC has not raised its high benchmark, but has moved its low benchmark upwards.
Recently, there have been reports in the market that TSMC's capital expenditures will resume annual growth in 2025, due to higher than expected demand for advanced processes and reserved production capacity for the 2 nanometer customer base. It has been reported that TSMC continues to increase its research and development efforts in advanced processes such as 2 nanometers. The demand for 2 nanometers has exceeded expectations, and production capacity plans are rumored to be imported into Southern Taiwan. TSMC's capital expenditure in 2025 may reach a range of $32 billion to $36 billion, the second highest in history, with an annual increase of 12.5% to 14.3%. ASML and Applied Materials are the winners of this wave, and Taiwan's related cooperative factories are also benefiting.