Worldwide sales of semiconductor manufacturing equipment increased 5% from $102.6 billion in 2021 to an all-time record of $107.6 billion last year, SEMI, the industry association representing the global electronics design and manufacturing supply chain, reported today. The data is now available in the Worldwide Semiconductor Equipment Market Statistics (WWSEMS) Report.

For the third consecutive year, China remained the largest semiconductor equipment market in 2022 despite a 5% slowdown in the pace of investments in the region year over year, accounting for $28.3 billion in billings. Taiwan, the second-largest destination for equipment spending, recorded an increase of 8% to $26.8 billion, marking the fourth straight year of growth for the region. Equipment sales to Korea contracted 14% to $21.5 billion. Annual semiconductor equipment investments in Europe surged 93%, while North America logged a 38% increase. Sales to the Rest of World and Japan increased 34% and 7% year over year, respectively.

According to news agencies residing within Russian territories, it has been widely reported that Cisco has destroyed an inventory of unsold equipment with a total worth of $23.5 million. TASS, a Kremlin-controlled news organization, has made reference to account statements provided by Cisco Systems (the remaining legal entity of the Cisco Group based within the Federation) - it reports that the equipment was "physically destroyed" in January 2023, post a termination of sales in Russia and Belarus. The financial statements outline the liquidation of "primarily spare parts," but the agency claims that Cisco engaged in the destruction of network hardware, demo units and office furniture.

Cisco was one of the first tech companies to withdraw from Russian territories, following the full-scale invasion of the Ukraine. Soon after the beginning of the conflict, Cisco Systems announced the cessation of its business dealings, starting with a stoppage of sales in March 2022. A June deadline was specified for a complete shutdown of operations. The company made a decision by August 2022 to dispose of unsold inventories located within affected territories - the necessary permits for re-export of goods had not been obtained. It is not clear whether U.S. sanctions (against Russia) played a part in influencing the North American tech company's decision to engage in a scorched earth policy and obliterate the physical remnants of stock plus premises in Russia and Belarus.

The Japanese government, on Friday March 31, announced that it plans to place restrictions on its export of 23 types of semiconductor manufacturing equipment. This follows similar efforts announced by other nations, including the USA and the Netherlands. In a news conference, the Minister for Economy, Trade and Industry (METI), Yasutoshi Nishimura stated: "We are fulfilling our responsibility as a technological nation to contribute to international peace and stability." The press release makes no mention of a trade battle between the USA or China, but the implication is that METI is limiting the latter's access to Japan's most advanced chip making equipment.

Nishimura-san continues: "If our exports are not being re-appropriated for military use, we will continue exporting. We believe the impact on companies will be limited." The U.S. government has called on its allies to prevent China's access to semiconductor manufacturing technology in order to slowdown domestic technological and military advancement. Japan and the Netherlands have previously agreed, back in January of this year, to restrict exports to China of equipment that could be used to churn out sub-14 nm chips.