China is set to lead the world in equipment spending for 300mm semiconductor factories, with a forecast predicting $30 billion in investments annually for the next four years. This surge in spending is attributed to government incentives and policies promoting domestic self-sufficiency in semiconductor manufacturing. Taiwan and South Korea are expected to follow closely behind in equipment spending, with Taiwan projected to invest $28 billion in 2027 and South Korea at $26.3 billion.
The semiconductor industry is poised for significant growth, with global spending expected to reach a record $137 billion in 2027. This growth is driven by the increasing demand for AI-related applications, memory chip recovery, high-performance computing, and automotive applications. The rise in demand for AI-related chips has led to a surge in the stock prices of key suppliers and manufacturers like Nvidia and Taiwan Semiconductor Manufacturing Co.
The report emphasizes the importance of government support in semiconductor manufacturing to boost economies and enhance security globally. This trend is anticipated to bridge the equipment spending gap between different regions and historical top-spending regions in Asia. China, aiming to reduce reliance on foreign chip suppliers, has introduced guidelines to limit purchases from U.S. suppliers for government-used PCs and servers.
In the Americas, there is a projected doubling of 300mm fab equipment investments from $12 billion in 2024 to $24.7 billion in 2027. The U.S. Commerce Department recently announced a significant investment to support new semiconductor manufacturing sites by Intel Corporation in various states. Equipment spending in Japan, Europe & the Middle East, and Southeast Asia is also expected to increase in the coming years.
The growing demand for high-bandwidth memory (HBM) driven by the need for greater data throughput, particularly for AI servers, is fueling increased investment in memory technology. Memory technology is projected to generate $79.1 billion in equipment purchases by 2027, reflecting a substantial annual growth rate.
