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Taiwan replaces Japan as No. 2 market for chipmaking equipment

Summary

Taiwan displaced Japan last year as the world's second-largest market for equipment used to make microchips, according to an industry report.

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CALIFORNIA--Taiwan displaced Japan last year as the world's second-largest market for equipment used to make microchips, according to an industry report.

"Taiwan continued to set the pace for the industry and for the first time finished the year as the second-largest market," said Stanley Meyers, president of Semiconductor Equipment and Materials International, on the SEMI Web site.

Taiwan Semiconductor Manufacturing Co and United Microelectronics Corp, the world's two largest make-to-order chip companies, are responsible for most of Taiwan's demand for chipmaking equipment. The two companies nearly doubled production capacity last year to meet an increase in orders for chips from customers such as Motorola Inc and Fujitsu Ltd.

North America remained the largest market for chipmaking equipment, with sales jumping 77 percent to US$13.15 billion in 2000 from the previous year. Sales in Taiwan reached US$9.42 billion, increasing 108 percent from 1999. Japan accounted for US$9.22 billion in sales, up 67 percent from the previous year.

Sales in Southeast Asia, including Singapore, Malaysia and China, reached US$6 billion in 2000. They grew at the fastest rate of any region in the world at 116 percent, SEMI said.

SEMI compiled the Worldwide Semiconductor Equipment Market Statistics (SEMS) Report from data provided by its members and those of the Semiconductor Equipment Association of Japan, SEAJ.

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