China's chip equipment purchases last year nearly twice Korea's total

China spent a total of $36.6 billion on chip equipment last year, far ahead of Korea in second with $19.9 billion.

Miniature workers are placed on printed circuit boards with semiconductor chips with the flag of China in the backdrop, in this illustration picture taken July 5, 2023. [REUTERS/YONHAP]

One in three chip equipment purchases last year were made by China, according to a report by a semiconductor industry association released on Tuesday.

The SEMI report said that China spent $36.6 billion on chip equipment last year, logging a 29 percent increase compared to the previous year.

Global chip equipment purchases came to a total of $106.3 billion in 2023, dropping by 1.3 percent compared to 2022's $107.6 billion, an all-time high amid a cyclical upturn in the industry.

Korea came in second with $19.9 billion in 2023, down by 7 percent on year, followed by Taiwan with $19.6 billion, a 27 percent plunge during the cited period resulting from one of the worst chip gluts experienced by the sector.

China, Korea and Taiwan accounted for 72 percent of global purchases last year, the report said.

North America's chip equipment purchases jumped by 15 percent to $12.5 billion amid buoyed market conditions due to the U.S. CHIPS Act.

Ajit Manocha, CEO of the U.S.-based association serving the electronics manufacturing supply chain, said that despite a slight downturn in global chip equipment sales last year, the chip industry will remain strong this year due to strategic investments in select regions.

BY JIN EUN-SOO [jin.eunsoo@joongang.co.kr]