Taiwan surges past South Korea to become world’s No. 2 chip-equipment market as global sales hit record

Global semiconductor equipment sales reached a record $40.53 billion in the second quarter of 2026, as demand linked to artificial intelligence continued to lift investment across the chip industry. Taiwan delivered the most striking regional shift, overtaking South Korea to become the world’s second-largest market.

Data from the International Semiconductor Industry Association, SEMI, and the Japan Semiconductor Manufacturing Equipment Association showed that quarterly sales climbed from $36.55 billion in the first quarter. Sales have now increased year on year for nine consecutive quarters, while quarterly revenue has remained above $30 billion for eight straight quarters.

China retained the top position for a 13th consecutive quarter, with second-quarter equipment sales of $11.91 billion, up 5% from a year earlier. Taiwan recorded $10.89 billion, a 24% annual increase, and moved ahead of South Korea for the fourth time in five quarters. South Korea ranked third with $9.08 billion, despite posting the strongest annual growth among the three major markets, at 54%.

SEMI Chief Executive Ajit Manocha said two consecutive quarterly records reflected chipmakers’ continued expansion of advanced manufacturing capacity. He pointed to sustained demand for advanced logic chips used in AI systems, as well as HBM and DRAM memory. Sales also rose in North America and Europe, suggesting that the investment cycle had spread beyond Asia. North American sales reached $3.5 billion, European sales $1.23 billion, and Japanese sales $2.44 billion, while other markets totaled $1.47 billion. The figures combine monthly sales data supplied by semiconductor equipment manufacturers worldwide.

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Semiconductor equipment sales reaching record highs for two consecutive quarters reflects the industry’s continued expansion of advanced manufacturing capacity to meet growing semiconductor demand, especially demand related to AI infrastructure.