Semiconductor equipment spending worldwide 2022-2025, by segment

Semiconductor equipment spending is projected to reach new heights in 2025, with wafer fab equipment leading the charge. This segment is expected to account for 112.78 billion U.S. dollars of the total spending, reflecting the industry's continued focus on advancing chip manufacturing capabilities. A steady increase in investment across all segments is expected, including assembly and packaging equipment and test equipment.

Geographical shifts in semiconductor investment

While global spending on semiconductor equipment is rising, regional dynamics are evolving. China emerged as a major player in 2023, with spending reaching 236.6 billion. South Korea and Taiwan also made significant investments, spending 19.94 billion U.S. dollars and 19.62 billion U.S. dollars, respectively. These figures underscore the intense competition among countries to establish dominance in semiconductor manufacturing capabilities.

Strategies are being implemented across the world

To safeguard the supply of chips, governments around the world have announced a range of measures to support the semiconductor industry. In 2024, China announced its third state-backed investment fund, with 47.5 billion U.S. dollars made available to companies with a focus on chip manufacturing, design, equipment, and materials. In the United States, companies are accessing subsidies and grants as part of the 52 billion U.S. dollars available via the government’s CHIPS Act. While in Europe, a similar project can be seen with the 43 billion euros offered up through the European Chips Act.