According to the latest information, the delivery lead times for key semiconductor manufacturing equipment have recently extended to as much as double their previous duration. This is attributed to a surge in equipment purchase orders driven by simultaneous factory (fab) investment initiatives by global semiconductor manufacturers.

With equipment delivery times becoming a critical variable in production planning, competition among manufacturers to secure equipment is expected to intensify. South Korean semiconductor giants, including Samsung Electronics and SK hynix which are advancing multiple fab construction projects, have already begun formulating countermeasures, such as considering placing purchase orders earlier than usual.

Industry sources indicate that the lead times for major equipment from the top five global equipment manufacturers—Applied Materials, ASML, Lam Research, Tokyo Electron (TEL), and KLA—which collectively hold about 70% of the market, have increased to 1.5 to 2 times their previous length. This means the time from placing a purchase order to the equipment's actual arrival at a fab has doubled.

While specifics vary by process step, equipment that typically had a 6-month lead time under normal conditions now may require over a year from order placement to receipt.

The extension is not limited to global equipment leaders; lead times from major domestic Korean equipment suppliers have also lengthened. For instance, a Korean company referred to as A, which supplies front-end and back-end process equipment to TSMC and Micron, has seen lead times for some equipment extend from the original 3-4 months to 6-8 months. Another firm, B, supplying back-end equipment to Micron, has confirmed lead times have stretched to 1.5 times previous levels, with some equipment reportedly taking over a year.

A senior industry insider in the semiconductor equipment sector noted, "Even for equipment makers that secured production capacity in advance, lead times are extending, and production lines are currently operating at full capacity," adding, "Companies that did not prepare for capacity expansion in advance are experiencing continuous delivery delays in the face of the flood of orders."

Observations suggest that the increase in equipment lead times will inevitably impact the fab projects currently being planned by Samsung Electronics and SK hynix. If equipment cannot arrive on schedule, the planned operational start dates for these fabs may be forced to delay. Reportedly, the procurement departments of both Samsung Electronics and SK hynix are closely monitoring lead time trends in the equipment industry and responding proactively.

An industry representative stated, "Samsung Electronics and SK hynix are planning to place purchase orders earlier than in the past, factoring in the increased semiconductor equipment lead times," and emphasized, "Equipment delivery schedules have become a significant issue that could affect fab investment and operational plans."

Previously, during 2021-2022, semiconductor equipment lead times also experienced a sharp increase. The current situation differs, however, as it is driven by successive large-scale fab investments by various countries and companies.

The rapid growth in semiconductor demand, fueled by increased infrastructure investment following the widespread adoption of artificial intelligence (AI), is a key driver. To meet this demand, semiconductor manufacturers are building fabs worldwide and moving equipment in, causing a significant backlog of orders at major equipment makers and consequently extending lead times.

As manufacturers globally continue their fab investments to secure semiconductor production capacity, equipment lead times are expected to remain extended for a considerable period. Concerns are rising not only about semiconductor equipment but also about potential supply shortages in the broader facility sector, including fab construction.

Another industry source commented, "Globally, competition to secure the facilities needed for fab construction will become more intense," warning, "Failure to secure these facilities in advance could weaken one's leadership position in semiconductor production capacity."