March 19, 2007 – SEMI today reported that worldwide sales of semiconductor manufacturing equipment totaled $40.47 billion in 2006, compared to $32.88 billion in 2005, representing a year-over-year increase of 23 percent. The data is available in SEMI’s Worldwide Semiconductor Equipment Market Statistics (SEMS) Report.

“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 percent over 2005 to reach US$9.20 billion. North America reclaimed the number two spot with $7.32 in equipment sales. Following closely behind were the regions of Taiwan and South Korea with spending of $7.31 billion and $7.01 billion. respectively.

After experiencing negative growth in 2005, the China market region grew the most in 2006, rising over 74 percent to US$2.3 billion. The Rest of World region, which aggregates Singapore, Malaysia, Philippines, other areas of Southeast Asia, and smaller global markets, increased almost 30 percent. The equipment market in Europe increased 10% in 2006.

The global wafer processing equipment market segment increased 26 percent; the assembly and packaging segment grew 14 percent; the total test equipment sales increased 21 percent.

Compiled from data submitted by members of SEMI and the Semiconductor Equipment Association of Japan (SEAJ), the report is a summary of the monthly billings and bookings figures for the global semiconductor equipment industry. The report includes data for seven major semiconductor producing regions and 22 product categories.