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Taiwan expected to top chip equipment spending in 2022

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Taipei, Sept. 28 (CNA) Taiwan is expected to spend US$30 billion on semiconductor production equipment this year, the most of any country in the world, according to global semiconductor trade association SEMI.

Fab equipment spending by firms in Taiwan should rise 47 percent year-on-year to US$30 billion this year, ahead of South Korea's US$22.2 billion, which would be 5.5 percent less than in 2021, SEMI said in a fab forecast report released Tuesday.

China is likely to come third, with spending expected to fall 11.7 percent from its peak last year to US$22 billion.

The region of Europe and the Mideast was forecast to log record high spending of US$6.6 billion, up 141 percent year-on-year, according to the report.

Overall, global fab equipment spending is expected to increase approximately 9 percent this year to a record US$99 billion, the report said, but that projection was about 9.2 percent lower than the US$109 billion forecast by the trade association in June.

Analysts attributed the downward revision to long lead times for semiconductor equipment that could prompt chipmakers, such as Taiwan Semiconductor Manufacturing Co. (TSMC) and United Microelectronics Corp. to delay capital expenditure and expansion plans.

The SEMI report expected global semiconductor capacity growth in 2022 to reach 7.7 percent, after a 7.4 percent rise in 2021, and said it should grow again by 5.3 percent in 2023.

After achieving a record high in 2022, the global fab equipment market is projected to remain healthy next year, driven by new fabs and efforts to upgrade existing facilities, SEMI said in the report.

Meanwhile, TSMC was still the leading contract chipmaker in the world in the world in the second quarter with a market share of 53.4 percent, according to a report released Tuesday by market research firm TrendForce.

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