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    Chip manufacturing equipment sales leapt 37% last year

    An Elpida DRAM chip (front) is pictured in Taipei March 17, 2010. A strong recovery in computer memory chip prices has sapped momentum for a state bailout of Taiwan's smaller struggling chipmakers and threatens their demise in the next downturn as global rivals power ahead. To match analysis DRAM/. REUTERS/Nicky Loh (TAIWAN - Tags: BUSINESS) - RTR2BQDG

    Sales of chip manufacturing equipment rose 37% to $56.6 billion last year, says SEMI. 2016 sales were $41.24 billion.

    Korea claimed the largest market for new semiconductor equipment for the first time, shattering all previous regional spending records with $17.95 billion in equipment sales. Taiwan fell to the second position with sales of $11.49 billion.

    Annual spending rates increased for South Korea, Europe, China, Japan and North America. However, new equipment markets in Taiwan and Rest of World (primarily Southeast Asia) contracted.

    Equipment sales to China increased 27% as the region maintained the third largest market position for the second year in a row.

    The 2017 equipment markets in Japan and North America held onto fourth and fifth places, respectively, while the Europe market rose in the rankings to the sixth spot.

    The global other front-end segment increased 40%; the wafer processing equipment market segment rose 39%; the assembly and packaging segment jumped 29%; and total test equipment sales increased 27%.

    Semiconductor Capital Equipment Market by World Region (2016-2017)

    2017 2016 % Change
    South Korea 17.95 7.69 133%
    Taiwan 11.49 12.23 -6%
    China 8.23 6.46 27%
    Japan 6.49 4.63 40%
    North America 5.59 4.49 24%
    Europe 3.67 2.18 68%
    Rest of World 3.20 3.55 -10%
    Total 56.62 41.24 37%

    Source: SEMI/SEAJ April 2018