China, South Korea, and Taiwan are expected to lead semiconductor manufacturing investments between 2025 and 2027, according to estimates from global industry association SEMI. Semiconductor manufacturers are forecasted to spend $400 billion on chip-making equipment during this period, with demand driven by geopolitical factors and increasing needs for AI and memory chips. SEMI’s report highlights that spending will grow by 24%, reaching $123 billion in 2025 alone.
China, South Korea, and Taiwan are set to be the largest contributors. China is projected to invest over $100 billion within the next three years, spurred by its national policies on self-sufficiency, although its spending will decline from record levels seen in 2023. South Korea is expected to spend $81 billion, supported by its memory chip giants Samsung and SK Hynix. Taiwan, home to the world’s leading contract chipmaker TSMC, is predicted to invest $75 billion, with the company expanding into the U.S., Japan, and Europe.
Key vendors benefiting from this surge in spending include ASML of the Netherlands, Applied Materials, KLA Corp, and Lam Research of the U.S., as well as Tokyo Electron of Japan. Meanwhile, other regions such as the Americas, Japan, and Europe are also expected to see significant growth, with projected spending at $63 billion, $32 billion, and $27 billion, respectively. SEMI noted that investment in these regions is anticipated to more than double by 2027 due to policy incentives aimed at addressing semiconductor supply concerns.
