Semiconductor manufacturers will spend $400 billion on chip manufacturing equipment between 2025 and 2027. Most of this amount ($100 billion) will fall to China, Reuters reports with reference to the industry association SEMI.

Among the key equipment suppliers in the coming years, SEMI lists the Netherlands’ ASML, Applied Materials, KLA Corp and Lam Research from the US, as well as Tokyo Electron from Japan.

“China will retain its position as the region with the largest spending on this industry. The country will spend more than $100 billion over the next three years. The costs are determined by the national policy of self-sufficiency,” said SEMI.

China is followed by South Korea, which is expected to spend $81 billion over the same period. That compares with the $75 billion planned to be spent by Taiwan, home of leading contract chip maker TSMC. Projected spending in other countries looks like this: $63 billion in the United States, $32 billion in Japan, and $27 billion in Europe.

“In particular, these regions are expected to more than double their investment in equipment in 2027 compared to 2024 due to supply concerns for critical semiconductors,” SEMI said.

SEMI cites trade tensions between the US and China, as well as demand for AI and related chips, as additional factors driving costs.