[News] Global Chip Equipment Sales in 2024 Expected to Hit Record High, Even Higher Next Year

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This year, global semiconductor manufacturing equipment sales are expected to grow and set a new historical record. It is estimated that next year will see even more robust growth, with an anticipated increase of 17%.

According to the forecast report from the International Semiconductor Industry Association (SEMI) released on July 10th, it’s indicated that global chip equipment sales in 2024 are estimated to increase by 3.4% year-over-year to USD 109 billion, surpassing the USD 107.4 billion record set in 2022. Furthermore, 2025 is projected to show even stronger growth, with sales expected to surge to USD 128 billion, breaking the record set in 2024.

“The growth in total semiconductor manufacturing equipment sales already underway this year is forecast to be followed by a robust expansion of roughly 17% in 2025,” said Ajit Manocha, SEMI president and CEO. “The global semiconductor industry is demonstrating its strong fundamentals and growth potential supporting the diverse range of disruptive applications emerging from the Artificial Intelligence wave.”

SEMI noted that due to continued strong equipment investment in China and increased investment in DRAM and HBM driven by AI computing, global sales of wafer fab equipment (WFE) in 2024 are estimated to grow by 2.8% year-over-year to USD 98 billion.

This is a significant upward revision from the previous estimate of USD 93 billion made in December and surpasses the USD 96 billion recorded in 2023, setting a new historical high. With the increased demand for advanced logic and memory applications, global WFE sales in 2025 are projected to increase by 14.7% year-over-year to USD 113 billion.

SEMI further stated that until 2025, China, Taiwan, and South Korea are expected to remain the top three countries in chip equipment investment. Due to continued growth in China’s equipment procurement, China is expected to maintain its leading position throughout the forecast period (up to 2025). Equipment shipments to the Chinese market in 2024 are estimated to exceed USD 35 billion, setting a new historical high, solidifying China’s unshakable lead. However, due to large-scale investments in China over the three-year period ending in 2024, it is anticipated that investments will decrease in 2025.

Chip equipment giant Tokyo Electron (TEL) announced in a press release on May 10 that starting in the second half of this year, the demand for DDR5 and HBM will increase, driving a projected recovery in investments in the most advanced DRAM.

As a result, the global market size for front-end chip manufacturing equipment in 2024 is projected to grow by 5% year-on-year to approximately 100 billion USD, matching the current historical high recorded in 2022 (around USD 100 billion). Additionally, with continued growth in AI servers and a recovery in demand for PCs and smartphones, the WFE market is anticipated to see a double-digit increase (over 10%) in 2025 compared to 2024.

In a financial report press release on May 9, semiconductor equipment company Screen Holdings stated that due to investments in mature processes in China and investments in the most advanced processes in Taiwan, the WFE market is expected to grow in 2024, with an estimated annual increase of about 5%.

Per a report by Nikkei on July 5th, SEAJ’s forecast report indicates that for the 2024 fiscal year (April 2024 to March 2025), the sales of Japanese-made chip equipment (including sales by Japanese companies both domestically and overseas) have been increased to JPY 4.2522 trillion, marking a significant increase of 15.0% compared to the 2023 fiscal year.

This will be the first time annual sales break the 4 trillion yen mark, setting a new historical record. The main drivers are the widespread adoption of AI, leading to extremely strong demand for GPUs used in AI servers, and the continued surge in demand for HBM used in conjunction with these GPUs.