China buys more semiconductor equipment than the U.S., Taiwan and the Republic of Korea combined

China continues to be the largest buyer of chip manufacturing equipment. The Middle Kingdom provided almost half of the revenue of the entire market.

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In the third quarter of 2023, manufacturers reduced purchases of chip equipment by 1% compared to the second quarter. In the reporting period, the market decreased to $25.6bn, of which $11.06bn came from China.

Companies from the Celestial Empire increased spending on equipment purchases by 42% compared to the third quarter of 2022 and by 46% compared to the second quarter of 2023. Note that Chinese manufacturers may not be purchasing the most advanced equipment due to sanctions.

The 2nd place in the third quarter is occupied by the Republic of Korea. Manufacturers allocated $3.85bn for the purchase of equipment - 19% and 32% less than a year earlier and than last quarter, respectively.

Taiwanese companies' spending more than halved year-on-year to $3.77bn, while North American investment fell to $2.5bn (-5%) and Japan's to $1.82bn (-29%). But European manufacturers spent $1.7bn to buy equipment for chip production, which is 2% more than a year earlier.

Source: SEMI