According to the latest "Worldwide Semiconductor Equipment Market Statistics Report" released by SEMI, the total global semiconductor equipment sales in 2023 will decline slightly by 1.3% to US$106.3 billion from the historical high of US$107.6 billion in 2022.

As shown in the figure below, by region, the top three markets for semiconductor equipment spending (mainland China, South Korea, and Taiwan) account for 72% of the global equipment market in 2023. Mainland China still sits firmly on the throne of the world's largest semiconductor equipment market, with an accelerated pace of investment, increasing 29% from the previous year to US$36.6 billion; South Korea, the second largest equipment market, saw equipment spending fall 7% to US$19.9 billion due to weak demand and inventory adjustments in the memory market; Taiwan's total equipment sales fell 27% to US$19.6 billion after four consecutive years of growth.

Annual semiconductor shipment statistics by region around the world (Unit: US$ billion): Annual increase or decrease rate

Source: SEMI

Thanks to strong investment driven by the CHIPS and Science Act, annual semiconductor equipment investment in North America increased by 15%, while Europe also grew slightly by 3%. Sales in Japan and the rest of the world fell by 5% and 39% respectively compared with the same period last year.

“Despite a slight decline in global equipment sales, the semiconductor industry continues to strengthen, with strategic investments driving growth in key regions, and overall performance this year still better than most industry participants expected,” said Shih-Lun Tsao, SEMI’s global chief marketing officer and president of Taiwan.

From the perspective of equipment type, global sales of wafer processing equipment will increase by 1% in 2023, while sales in other front-end fields will increase by 10%. Packaging equipment will continue the downward trend of 2022, with a decrease of 30% in 2023, and total sales of testing equipment will decrease by 17% year-on-year compared with the previous year.