Taiwan Becomes The World’s Top Spender In Semiconductor Equipment, Dethroning South Korea and China

The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters, in Hsinchu, Taiwan, on Jan. 19, 2021. Ann Wang/Reuters File Photo

Taiwan’s leading role in chipmaking has come under the spotlight amid a global shortage of semiconductors. On top of being the world’s largest chip producer, Taiwan has also become the world’s top spender on semiconductor equipment, dethroning South Korea and China.

According to the global semiconductor trade association (SEMI), Taiwan was the largest buyer of semiconductor equipment in the third quarter of this year, as domestic firms expanded production capacity and upgraded technologies to improve global competitiveness.

Taiwan’s Robust Semiconductor Supply Chain

On Dec. 2, Taiwan’s Central News Agency reported that Taiwan purchased $7.33 billion worth of semiconductor equipment in the July-September period, increasing 45 percent quarterly and 54 percent annually, ranking first globally in equipment spending, citing SEMI data.