SAN JOSE – Worldwide sales of semiconductor manufacturing equipment totaled $40.47 billion in 2006, a 23% year-over-year increase, SEMI reported today.

"The worldwide semiconductor equipment industry resumed strong growth in 2006 as the robust memory chip market and continued transition to 300mm wafers fueled sales of manufacturing technology," said Stanley T. Myers, president and CEO of SEMI.
"With double-digit gains in all market regions, the equipment industry posted annual sales second only to the extraordinary levels in 2000."

For the third year in a row, the Japan market region spent the most on semiconductor equipment, growing almost 13% over 2005 to reach $9.2 billion. North America reclaimed the number two spot with $7.32 in equipment sales. Following closely behind were Taiwan and South Korea with spending of $7.31 billion and $7.01 billion, respectively.

After experiencing a drop in 2005, China grew the most in 2006, rising over 74% to $2.3 billion. Singapore, Malaysia, Philippines, other areas of Southeast Asia and smaller global markets increased almost 30%. The equipment market in Europe increased 10% in 2006.

Global wafer processing equipment rose 26%, assembly and packaging grew 14%, and total test equipment sales increased 21%.