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Semiconductor Equipment Spending Healthy

Semiconductor Equipment Spending Healthy
by Bill Jewell on 09-24-2025 at 4:00 pm

Key Takeaways

  • Global semiconductor manufacturing equipment spending reached $33.07 billion in Q2 2025, a 23% increase from Q2 2024.
  • China was the largest spender at $11.36 billion, despite a 7% decrease from the previous year, while Taiwan showed significant growth with a 125% increase to $8.77 billion.
  • North America experienced rapid growth in 2024 but saw a decline in Q1 and Q2 2025 due to delays in wafer fab projects, including Intel's and Micron's delays.
  • The outlook for total semiconductor capital expenditures (CapEx) in 2025 is projected at $160 billion, up 3% from 2024, with mixed expectations for 2026.
  • The U.S. CHIPS and Science Act aims to boost domestic semiconductor manufacturing, but recent administration changes and investment strategies are raising concerns about its implementation.

Global spending on semiconductor manufacturing equipment totaled $33.07 billion in the 2nd quarter of 2025, according to SEMI and SEAJ. 2Q 2025 spending was up 23% from 2Q 2024. China had the largest spending at $11.36 billion, 34% of the total. However, China spending in 2Q 2025 was down 7% from 2Q 2024. Taiwan had the second largest amount and experienced the fastest growth, with 2Q 2025 spending $8.77 billion, up 125% from 2Q 2024. TSMC was the major driver of the increase in Taiwan, with its capital expenditures (CapEx) up 62% in the first half of 2025 versus the first half of 2024. South Korea spending was the third largest at $5.91 billion, up 31% from a year earlier.

Semiconductor Equipment Spend 2H 2025

North America showed the fastest growth in semiconductor equipment spending in 2024, with 4Q 2024 spending of $4.98 billion up 163% from $1.89 billion in 1Q 2024. However, North America spending in 1Q 2025 was $2.93 billion, down 41% from 4Q 2024. 2Q 2025 spending was down again at $2.76 billion. The spending drop can be attributed to delays in planned wafer fabs in the U.S. Intel has delayed completion of its wafer fab in New Albany, Ohio, until 2031 from its initial plan of 2025. Groundbreaking on Micron Technology’s wafer fab in Clay, New York, has been delayed until late 2025 from its original target of June 2024. Samsung reportedly delayed initial production at its new wafer fab in Taylor, Texas, to 2027 from an original goal of 2024.

Semiconductor equipment spending in Japan in 2Q 2025 was 2.68 billion, up 66% from 2Q 2024. Europe spending in 2Q 2025 was 0.72 billion, down 23% from a year earlier. Spending in the rest of the world (ROW) was 0.87 billion, down 28%.

The outlook for total semiconductor capital expenditures (CapEx) in 2025 remains essentially the same as our Semiconductor Intelligence estimates published in March 2025. We still project 2025 CapEx of $160 billion, up 3% from $155 billion in 2024. The outlook for 2026 CapEx is mixed. Intel expects CapEx to be lower in 2026 than its expected $18 billion in 2025. Micron Technology reported $13.8 billion in CapEx for its fiscal year ended in August 2025 and plans higher spending in fiscal year 2026. Texas Instruments projects 2026 CapEx of $2 billion to $5 billion compared to $5 billion in 2025. The company with the largest CapEx, TSMC projects a range from $38 billion to $42 billion in 2025. TSMC has not provided CapEx estimates for 2026, but investment bank Needham and Company predicts TSMC will increase CapEx to $45 billion in 2026 and $50 billion in 2027.

The U.S. CHIPS and Science Act was passed in 2022 to boost semiconductor manufacturing in the U.S. As reported by IEEE, most of the $30 billion proposed in the CHIPS Act was awarded in the two months after President Trump’s election in November 2024 and before his inauguration in January 2025. The Trump administration wants to revise the CHIPS Act but has not offered specific plans. In August, the U.S. government made an $8.9 billion investment in Intel for a 9.9% stake in the company. $5.7 billion of the investment came from grants approved but not yet awarded to Intel under the CHIPS Act. The remaining $3.2 billion in funding came from the Secure Enclave program which was awarded to Intel in September 2024. A contributor to Forbes questions the wisdom of the Intel investment.

U.S. Commerce Secretary Howard Lutnick is reportedly considering the U.S. government taking shares in other companies which have received money under the CHIPS Act. Thus, the Trump administration seems to be changing the terms of the CHIPS Act which was approved by Congress in 2022. Without any approval from Congress, the Trump administration is apparently taking back grant money and using it for equity investments.

Semiconductor Intelligence is a consulting firm providing market analysis, market insights and company analysis for anyone involved in the semiconductor industry – manufacturers, designers, foundries, suppliers, users or investors. Please contact me if you would like further information.

Bill Jewell
Semiconductor Intelligence, LLC
billjewell@sc-iq.com

Also Read:

Semiconductors Still Strong in 2025

U.S. Imports Shifting

Electronics Up, Smartphones down

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