Global spending on semiconductor manufacturing equipment totalled $33.07 billion in Q2 of 2025, according to SEMI and SEAJ. Q2 2025 spending was up 23% compared with the same quarter the previous year. Other figures showed that China had the largest spending at $11.36 billion, making up 34% of the total. However, China spending in Q2 2025 was down 7% from Q2 2024.
Furthermore, Taiwan had the second largest amount and experienced the fastest growth, with Q2 2025 spending reaching $8.77 billion, a 125% increase from Q2 2024. TSMC was the major driver of the increase in Taiwan as its capex was 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.
North America showed the fastest growth in semiconductor equipment spending in 2024, with Q4 2024 spending of $4.98 billion up 163% from $1.89 billion in Q1 2024. However, North America spending in Q1 2025 was $2.93 billion, down 41% from Q4 2024. Q2 2025 spending was down again at $2.76 billion.
This drop in spending can be attributed to delays in planned wafer fabs in the US. Intel, for instance, 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 Q2 2025 was 2.68 billion, up 66% from Q2 2024. Europe spending in Q2 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 capex in 2025 remains essentially the same compared with semiconductor intelligence estimates published in March 2025. SEMI and SEAJ 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 US. As reported by the 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 US 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.
US Commerce Secretary Howard Lutnick is reportedly considering the US 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.
