[Global Technology Reporter Wang Huan] “Nihon Keizai Shimbun” said on July 18 that it is expected that the sales of global semiconductor manufacturing equipment in 2017 will exceed the period of the IT bubble in 2000, setting a record high. The semiconductor manufacturing equipment industry group in the United States - International Semiconductor Manufacturing Equipment Materials Association (SEMI) disclosed the above news. South Korea's memory giant Samsung Electronics and other equipment investment will play a traction role. Judging by country and region, this was the top spot for competition between Korea and Taiwan. However, in 2018, China’s semiconductor investment will increase to the scale of South Korea and Taiwan, and semi-conductor investment may enter the “China, South Korea and Taiwan” era.

Samsung has the world's most advanced semiconductor manufacturing technology (memory factory in Xi'an, China)

On July 11, US local time, SEMI released a forecast that shows that in 2017, global sales of semiconductor manufacturing equipment will increase by 19.8% from the same period last year to US$49.4 billion, which is more than US$47.6 billion in 2000. In 2018, it will further increase by 8% to 53.2 billion U.S. dollars, for the first time to exceed 50 billion U.S. dollars.

The main driver for the expansion of the semiconductor manufacturing equipment market is the NAND type flash memory. As a storage device for smart phones and data centers, market demand continues to expand. Samsung Electronics invested approximately 1 trillion yen in this area in 2016, and its managing director, Li Mingzhen, said that “in 2017, it will increase further”. South Korea's SK Hynix is ​​using DRAM-type flash memory to increase production of NAND-type flash memory.

The memory technology ushered in the transition period and will enter the “three-dimensional memory” era of vertical arrangement and large capacity, which will play an important role in upgrading the new equipment. Nomura Securities analyst and Tamura Tetsuya said, "The explosive growth of data, memory is a serious shortage. The active market continues at least until the first half of 2018."

There is a "silicon cycle" in the semiconductor industry. Market conditions will change between boom and downturn every 3 to 5 years. Some people tend to think that they have already surpassed this and have entered the “super cycle” phase where demand has grown by leaps and bounds.

In terms of countries and regions, South Korea has two large-scale memory companies, and it is expected that its semiconductor investment will increase by 70% year-on-year in 2017 to US$12.9 billion, making it the largest market in the world for the first time. With the most cutting-edge investment from TSMC, the world’s largest semiconductor foundry, Taiwan’s semiconductor manufacturing equipment sales will continue to exceed US$10 billion.

Mainland China will also join the competition. It is expected that the investment amount in 2018 will increase by 60% from 2017 to 11 billion US dollars, surpassing Taiwan to rise to second place. Compared with 2013 five years ago, the amount of investment has soared to more than three times the original.

The Yangtze River Storage Technology, which is based on the Ziguang Group established by Tsinghua University, will support the Chinese government’s 2 trillion yen (about RMB 119.78 billion) in scale and will build the world’s largest storage facility in Wuhan, Hubei Province. Zhao Weiguo, chairman of Ziguang, stated that by 2020, he will enter the ranks of the world's top semiconductor companies.

Before the 2000s, Japan’s semiconductor investment has been at the leading position, but the current scale only accounts for about 10% of the world’s total. The relatively well-known investment project is Toshiba's Yokkaichi factory, which has a weak market presence.

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