[Semicon Korea 2018 project]
In 2018, the world semiconductor equipment market sales were at a record high as they were in 2017. In 2019, the semiconductor market is expected to decline due to a decrease in investment in major semiconductor companies. But by 2020, the scale is expected to once again increase.
The world semiconductor equipment market grew by 9.7 percent in 2018 to $ 622.9 billion, according the Fab Investment, Equipment and Materials Forecasts released by the International Semiconductor Equipment Association (SEMI). The market is expected to reach $ 59.58 billion in 2019, down by 4.0%, and to strongly grow by 20.7% in 2020, reaching $ 71.92 billion.
The semiconductor equipment market is dominated by Korea, which includes Samsung Electronics and SK Hynix. Semiconductor equipment sales in the country in 2018 were $ 17.11 billion. This is the second time that Korea claimed the number one spot following the previous year. The second place was taken by China with sales of $ 12.82 billion. This is a 55.7 percent increase over the previous year. It is estimated that equipment investment has surged due to Chinese companies entering the memory market. Taiwan was the third with $ 10.1 billion. Japan and Europe grew 32.5 percent and 14.2 percent, to $ 8.6 billion and $ 4.19 billion, respectively. In other regions (including Southeast Asia), the semiconductor equipment market also grew 23.7% YoY.
The world semiconductor equipment sales are projected to decline 4% from 2018 to $ 59.58 billion in 2019. The sales of major regions will also decrease. In 2019, Korea's semiconductor equipment sales are estimated to fall by 22.9 percent to 13.2 billion dollars from 2018, and in the case of China, a decrease of 2.2 billion dollars to 12.54 billion dollars due to the fall in memory prices is expected.
In Taiwan, where most of the investment is a foundry, it is expected that sales will increase by 16.8% in 2019 to reach 11.81 billion dollars. Investment in foundries and logic equipment is expected to remain solid in 2019, which should absorb some of the declines in memory equipment investment. High-tech investments are expected to continue, including the production of 7 · 10 nanometers (nm) and the production of 5 · 7 nanoparticles using extreme ultraviolet (EUV) processes. Legacy investment is expected to slow as specific technology node (28 nanometers) faces oversupply. SEMI explained that legacy technology means more than 32nm processes between 2014 and 2016, and more than 22nm processes between 2017 and 2020.
The sales of semiconductor equipment in all regions are expected to increase in 2020. Memory industry Capex, including DRAM and NAND, is expected to recover strongly in 2020. Some production facilities are expected to be added in the second half of 2019 and in 2020. Korea, China and Taiwan are expected to maintain their positions as the top three semiconductor equipment makers. In 2020, Korea's semiconductor equipment market is expected to reach $ 18.31 billion, China to reach $ 17.06 billion, and Taiwan to reach $ 12.49 billion. The Japanese market is expected to continue to increase its sales to $ 8.6 billion, $ 8.89 billion, and $ 9.47 billion between 2018 and 2020.
In 2018, wafer processing equipment accounted for the highest among equipment types with $ 50 billion in sales. This is up 10.2 percent from last year. Next is the order of △ test equipment of $ 5.4bn (up 15.6%) △ assembly and packaging equipment of $ 4bn (up 1.9%) △ other front-end equipment of $ 2.5bn (up 0.9%). Other pre-process equipment refers to fab equipment, wafer fabrication, masks and reticles. Etching, Exposure, and CVD equipment accounted for a large share of wafer equipment.
The total semiconductor sales in 2018 are expected to reach $ 470 billion. Growing 15.9% from last year, it once again renewed the record. However, the growth rate will slow down from 2019. It is expected to grow 2.6% in 2019, 3.2% in 2020 and 3.7% in 2021.