The 2007 Worldwide Semiconductor Equipment Market Statistics (SEMS) Report from SEMI clearly highlights the rapid ascendance of Taiwan as the leading capital equipment purchasing region. Semiconductor equipment sales to Taiwan grew 46 percent to reach $10.65 billion over 2006, the first time Taiwan spent more on semiconductor equipment than any other region. 

Worldwide billings totaled $42.77 billion in 2007, compared to $40.47 billion in 2006, which is close to a 6 percent increase over 2006, according to SEMI.

The wafer processing equipment market increased 11 percent in 2007 compared to 2006, according to SEMI, while the front-end ‘other’ portion, which includes mask making, grew by 2 percent in 2007. Assembly and packaging grew 15 percent but test equipment sales declined 21 percent, compared to 2006.

"Supported by the momentum of the 300 mm ramp and intensive memory investments, the global semiconductor equipment industry experienced its second best year ever," said Stanley T. Myers, President and CEO of SEMI. "Of note are the Taiwan and China regions where Taiwan has surpassed Japan and the China new equipment market is approaching the size of Europe's new equipment market."

Japan remains a significant source for equipment spending, continuing its fourth year in a row of above $8 billion in spending and its second successive year of above $9 billion in capital equipment purchases.

North America dropped to third position in capital spending in 2007 as purchases declined to $6.548 billion, compared to $7.324 billion in 2006. Korea took the second spot as spending rose slightly to $7.352 billion compared to $7.014 billion in 2006.

The European equipment market declined to $2.940 billion in 2007 compared to $3.959 billion in 2006, the lowest level since 2003. The Rest of World region, which SEMI includes as Singapore, Malaysia, Philippines, and areas of Southeast Asia and smaller global markets, decreased 18 percent.

However, the figures reveal that only the Taiwan market actually saw a higher level of growth on a percentage change basis year-on-year. Three regions (Europe, North America and Rest of World) reported declines year-on-year on a percentage change basis.