TAIPEI (Taiwan News) – Taiwan will register the third highest spending on semiconductor manufacturing equipment worldwide this year, international organization SEMI said Wednesday.

Taiwan’s semiconductor makers are expected to spend NT$694 billion (US$21 billion) on machinery during 2025, compared to a global figure of US$110 billion, per CNA. The world total marked an increase of 2% over last year, and the sixth consecutive rise since 2020.

SEMI predicted the global total would expand another 18% in 2026 to reach US$130 billion. Elements including high-performance computing, AI, and the need for data centers are fueling the demand for more semiconductors and related machinery.

Spending on equipment to make logic chips is expected to increase 11% this year to US$52 billion, and 14% next year to US$59 billion, according to SEMI estimates. While spending on memory chip machinery is only rising 2% this year to US$32 billion, next year’s expansion rate will likely reach 27%.

Only China and South Korea spent more on semiconductor equipment, US$38 billion and US$21.5 billion respectively, SEMI said. China’s total went against global trends by shrinking 24% this year, and is predicted to fall 5% next year, even though it remained No. 1 on a global scale.

SEMI concluded that the priority for the semiconductor sector should be to intensify recruitment and training to avoid a staffing shortage over the next two years.