Taiwan was the largest buyer of semiconductor production materials for the 15th consecutive year in 2024, spending US$20.1 billion, according to a report from the Semiconductor Equipment and Materials Institute (SEMI).

Global spending on semiconductor materials increased by 3.8% year-on-year to US$67.5 billion in 2024.

China ranked second with US$13.5 billion in materials procurement, followed by South Korea at US$10.5 billion.

The rise in global spending is attributed to a recovery in the semiconductor market and increasing demand for advanced materials used in high-performance computing and high-bandwidth memory, SEMI noted.

🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Taiwan’s semiconductor dominance spans decades, not just years

Taiwan’s position as the top semiconductor materials buyer for 15 consecutive years highlights its remarkable long-term dominance in the global chip industry.

The US$20.1 billion spent by Taiwan represents nearly 30% of global semiconductor material spending (US$67.5 billion), significantly outpacing China’s US$13.5 billion and South Korea’s US$10.5 billion1.

This prolonged leadership reflects decades of strategic industrial policy and ecosystem development that has made Taiwan the center of advanced chip manufacturing.

Taiwan’s continued leadership in material procurement correlates with its manufacturing dominance, particularly through Taiwan Semiconductor Manufacturing Company (TSMC), which produces the world’s most advanced chips.

The continued expansion of material purchases, despite global economic uncertainties, demonstrates Taiwan’s commitment to maintaining its technological edge in semiconductor manufacturing.

2️⃣ Material spending reveals shifting industry priorities

The 4.7% growth in packaging materials spending (reaching US$24.6 billion) compared to 3.3% growth in wafer fabrication materials (US$42.9 billion) signals an industry-wide shift toward advanced packaging technologies1.

This differential in growth rates reflects the increasing importance of packaging innovation as traditional chip scaling becomes more challenging and costly at advanced nodes.

The strong double-digit increase specifically in materials for advanced DRAM, 3D NAND, and leading-edge logic shows how the industry is prioritizing high-performance computing applications that drive AI and data center growth1.