The size of the global semiconductor equipment market – in terms of billings – rose to a record $36.55 billion in the first quarter of 2026, rising 14 percent year-over-year from $32.05 billion and increasing 1 percent sequentially from $36.27 billion in the fourth quarter of 2025, according to SEMI.
China remained the largest semiconductor equipment market with revenue of $10.99 billion in Q1 2026. However, spending declined 16 percent quarter-over-quarter from $13.13 billion, while still recording 7 percent annual growth from $10.26 billion.
Taiwan was the second-largest market, generating $8.77 billion, up 18 percent QoQ from $7.44 billion and 24 percent YoY from $7.09 billion, reflecting strong investment in advanced chip manufacturing.
Korea reported equipment revenue of $8.93 billion, rising 26 percent QoQ from $7.08 billion and 16 percent YoY from $7.69 billion, driven by memory and AI-related semiconductor investments.
North America recorded $3.28 billion in billings, increasing 6 percent QoQ from $3.09 billion and 12 percent YoY from $2.93 billion.
Japan generated $2.16 billion, down 24 percent QoQ from $2.82 billion and slightly lower than the $2.18 billion recorded a year earlier, representing a 1 percent decline.
The Rest of the World region posted $1.48 billion in equipment revenue, compared with $1.97 billion in the previous quarter and $1.03 billion a year ago, translating into a 25 percent sequential decline but a strong 43 percent annual increase.
Europe remained the smallest major regional market at $0.95 billion, up from $0.74 billion in Q4 2025 and $0.87 billion in Q1 2025, representing 28 percent QoQ growth and 9 percent YoY growth.
SEMI attributed the record quarterly billings to continued AI-driven investments, including capacity expansion and technology upgrades supporting leading-edge logic, DRAM memory production, and advanced packaging technologies. Demand for AI infrastructure continues to accelerate spending across the semiconductor supply chain, boosting equipment purchases by manufacturers worldwide.
SEMI President and CEO Ajit Manocha said the record first-quarter performance highlights ongoing industry investment in the manufacturing capacity and infrastructure required to support AI-driven semiconductor growth. He noted that continued spending on advanced semiconductor production and packaging technologies underscores the industry’s confidence in long-term AI demand.
