China the biggest purchaser of chipmaking machines as gross sales hit an all-time excessive

World gross sales of semiconductor fab gear grew by 5 p.c throughout 2022 to hit an all-time excessive, with China the biggest purchaser regardless of a fall in its funding amid the standoff with the US over entry to chips and different expertise.

The figures come from SEMI, the trade physique for electronics manufacturing and provide chain, in a brand new Worldwide Semiconductor Gear Market Statistics (WWSEMS) report.

In accordance with the report, gross sales of chipmaking equipment hit $107.6 billion final yr, up from $102.6 billion in 2021, as semiconductor firms invested so as to add extra capability, regardless of the downturn that took maintain within the latter half of final yr as inflation gripped many economies.

“The document excessive for semiconductor manufacturing gear gross sales in 2022 stems from the trade’s drive so as to add the fab capability required to assist long-term development and improvements in key finish markets together with high-performance computing and automotive,” claimed SEMI president and CEO Ajit Manocha.

These outcomes additionally mirror a need by chipmakers in a number of areas to keep away from any repetition of the provision chain points that surfaced throughout the pandemic, he added. Many firms minimize funding then, in response to falling orders, resulting in shortages when demand picked up once more.

China remained the biggest marketplace for semiconductor gear regardless of seeing a 5 p.c slowdown in investments in contrast with the earlier yr, in keeping with SEMI.

This drop is probably going brought on by US strikes to curtail China’s potential to make superior chips, which has now prolonged past American firms equivalent to Utilized Supplies to incorporate others equivalent to Dutch photolithography big ASML, as Washington has browbeaten allied nations together with the Netherlands and Japan to affix its sanctions.

China has already criticized Washington’s actions, with information company Reuters reporting that one of many nation’s commerce ministers expressed considerations about Japan’s plans to place export curbs on varied kinds of semiconductor manufacturing gear in a gathering with the Japanese ambassador. The minister is alleged to have urged Japan to observe World Commerce Group guidelines with a purpose to preserve stability of world provide chains.

Taiwan, the second largest marketplace for chipmaking equipment, recorded a rise of 8 p.c to $26.8 billion, in keeping with SEMI, whereas investments in Europe rose by a powerful 93 p.c and the North America market noticed a 38 p.c improve. Gross sales to Japan grew by 7 p.c, whereas the Remainder of World elevated by 34 p.c. Korea bucked the development by exhibiting a fall of 14 p.c to $21.5 billion.

In accordance with Bloomberg, the US seems to be shopping for extra of its chipmaking equipment from Taiwan, whose exports of semiconductor manufacturing equipment to America rose by 42.6 p.c in March in comparison with a yr earlier.

World gross sales of wafer processing gear have been up 8 p.c throughout 2022, whereas meeting and packaging gear gross sales decreased 19 p.c and whole check gear gross sales fell by 4 p.c, SEMI reported. ®