Taiwan was the world’s second-largest buyer of semiconductor production equipment in the third quarter of this year, data released yesterday by trade association SEMI showed.
In a statement, SEMI, which represents companies in the electronics manufacturing and design supply chain, said that Taiwan spent US$7.28 billion on semiconductor equipment in the third quarter.
However, despite the 9 percent quarter-to-quarter increase, Taiwan slipped one place in SEMI’s rankings, finishing behind China, which spent US$7.78 billion.
According to market analysts, firms in Taiwan have continued to invest in innovative technology in the search for long-term growth, despite the global semiconductor industry turning cautious amid fast-growing inflation and global interest rate hikes.
Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker, plans to spend US$36 billion on new facilities and equipment this year, from US$30 billion spent last year, with a large amount going toward equipment purchases.
In the third quarter, global semiconductor equipment spending totaled US$28.75 billion, up 9 percent from a quarter earlier, SEMI said.
China’s expenditure saw a 19 percent year-on-year increase in the third quarter to push the country up the rankings, SEMI’s data showed.
Analysts said Chinese firms had rushed to install production equipment before more restrictions on equipment exports became effective in the fourth quarter amid an escalating tech war between Washington and Beijing.
South Korea came in third after spending US$4.78 billion, down 17 percent from a quarter earlier, followed by North America, with US$2.61 billion, down 1 percent, and Japan with US$2.55 billion, up 55 percent from a quarter earlier.
In September, SEMI forecast that Taiwan would spend US$30 billion on semiconductor production equipment this year — the highest of any country in the world, and up 47 percent from last year.
South Korea was forecast to come in second with US$22.2 billion, a 5.5 percent annual decline, ahead of China’s US$22 billion, which would have been an 11.7 percent drop from last year.
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