SEOUL, March 10 (Korea Bizwire) — South Korea is expected to be the second-biggest spender on semiconductor manufacturing equipment this year, industry data showed Tuesday, as the global chip industry is likely to make a recovery despite the novel coronavirus outbreak.
South Korea, home to major memory chip producers Samsung Electronics Co. and SK hynix Inc., is estimated to invest US$13 billion in chip factory equipment this year, according to a report from SEMI, a global industry association representing companies in the electronics design and manufacturing supply chain.
Taiwan, led by the No. 1 foundry maker Taiwan Semiconductor Manufacturing Company (TSMC), is expected to top the list with $14 billion, according to SEMI.
Despite suffering from the novel coronavirus, China, the epicenter of the global outbreak, is projected to spend $12 billion this year, up 5 percent from a year ago, to take third place.
SEMI said global fab equipment spending is likely to rebound from its 2019 downturn and is expected to see a “modest recovery” this year.
According to its report, global fab equipment investment this year is forecast to grow 3 percent on-year to $57.8 billion.
For 2021, SEMI said that global fab equipment spending is estimated to reach a record high, with South Korea being the largest spender.
SEMI estimated that South Korea could spend $17 billion in 2021, followed by China with $15 billion and Taiwan with $13 billion.