Global investment in semiconductor pre-process equipment is expected to shrink by 22%

     According to the survey data released by the International Semiconductor Industry Association (SEMI), the world investment in pre-process manufacturing equipment for semiconductor circuits in 2023 will decrease by 22% year-on-year to $76 billion. As demand for smartphones and personal computers, mainly memory semiconductors, weakens amid global inflation, companies are reducing investment amid worsening market conditions.

     According to Japanese media, a set of data shows that investment in 2022 is $98 billion, a record high. In 2023, it exceeded the previous year, and exceeded the previous year for four years since 2019. However, SEMI forecasts that investment will recover again in 2024, rising 21% year-on-year to $92 billion.

     From different countries and regions in terms of investment in 2024, China's Taiwan, which has the world's largest semiconductor contract manufacturer TSMC, will increase 4% year-on-year to $24.9 billion, ranking first. South Korea will grow 42 percent year on year to $21 billion, ranking second, and mainland China at $16 billion, essentially unchanged from the previous year, ranking third. SEMI believes that the lack of growth in mainland China is affected by US restrictions on exports of cutting-edge semiconductor manufacturing equipment to China.

     World semiconductor production capacity continues to grow. Year-on-year growth of 7% in 2022, 5% in 2023 and 6% in 2024. Due to the increasing demand for pure electric vehicles (EVs), investment in power semiconductors will also expand.

     Toshiki Kawai, president of Tokyo Electron, the Japanese semiconductor equipment maker, has a similar view. He recently said that the market size of pre-process equipment in 2023 will be reduced by 20% year-on-year, but he expects demand for semiconductors and pre-process equipment to recover from the second half of the year, and to continue this trend in 2024 and 2025.