Global semiconductor equipment market revenues rose 21 percent to reach $32.05 billion in the first quarter of 2025, up from $26.42 billion in the same quarter of the previous year, according to the latest SEMI data.
However, the semiconductor equipment market experienced a sequential decline of 5 percent from $33.56 billion in the fourth quarter of 2024, reflecting seasonal trends.
China remained the largest market despite a decline in spending, with revenues falling from $12.52 billion in Q1 2024 to $11.88 billion in Q4 2024 and further to $10.26 billion in Q1 2025.
Korea showed significant growth, rising from $5.20 billion in Q1 2024 to $6.22 billion in Q4 2024 and reaching $7.69 billion in Q1 2025.
Taiwan also posted strong gains, with spending jumping from $2.34 billion in Q1 2024 to $5.63 billion in Q4 2024 and $7.09 billion in Q1 2025.
North America saw an increase from $1.89 billion in Q1 2024 to $4.98 billion in Q4 2024 but dropped to $2.93 billion in Q1 2025.
Japan experienced moderate growth from $1.82 billion in Q1 2024 to $2.66 billion in Q4 2024 before dipping to $2.18 billion in Q1 2025.
The Rest of the World segment rose from $0.76 billion in Q1 2024 to $1.22 billion in Q4 2024 and slightly declined to $1.03 billion in Q1 2025.
Europe’s market contracted, falling from $1.89 billion in Q1 2024 to $0.97 billion in Q4 2024 and $0.87 billion in Q1 2025.
The year-over-year growth was largely driven by surging investments in Korea and Taiwan, offsetting declines in China and Europe, according to SEMI’s latest Worldwide Semiconductor Equipment Market Statistics (WWSEMS) report.
Growth Drivers
A key driver behind this growth is the surging demand for AI-capable chips, which is fueling a new wave of investments in advanced semiconductor manufacturing capacity worldwide. The AI boom has significantly increased the need for high-performance compute infrastructure, spurring global fab expansions and translating into robust equipment sales.
“Future-focused investments in chipmaking capacity across regions are propelling the market,” said Ajit Manocha, SEMI President and CEO. “The industry is demonstrating remarkable resilience despite geopolitical tensions, tariff shifts, and export control uncertainties.”
Strategic Focus
SEMI emphasized its proactive engagement with governments worldwide to secure policy frameworks that support the stability and predictability necessary for multi-billion-dollar fab and equipment investments. Ensuring regulatory clarity is seen as critical to sustaining long-term growth and innovation in advanced manufacturing.
The semiconductor industry’s forward-looking strategy includes:
Regional diversification of manufacturing to mitigate geopolitical risks
Public-private partnerships to fund next-generation fabrication and R&D
Investment in automation and sustainability to drive operational efficiency
Strengthening supply chain resilience across critical material and equipment segments
As the sector prepares for the next growth wave led by AI, automotive, and quantum computing, the sustained rise in equipment spending reflects confidence in semiconductor manufacturing as a strategic, future-proof industry.
TelecomLead.com News Desk
