S. Korea expected to be 2nd in fab equipment spending this year: report

SEOUL, March 10 (Yonhap) -- 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.

kdon@yna.co.kr
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