AMSTERDAM, Sept 26 (Reuters) - Semiconductor

manufacturers will spend a record $400 billion on computer

chip-making equipment in 2025-2027, global industry association

SEMI said in estimates published on Thursday, with China, South

Korea and Taiwan leading the way.

Key drivers include extra demand for excess capacity in

geographical regions amid U.S.-China trade tensions, and demand

for AI chips and related memory chips.

In a report, the association estimated that spending on

equipment will grow by 24% to $123 billion in 2025.

Key equipment vendors include ASML of the

Netherlands, Applied Materials ( AMAT ), KLA Corp ( KLAC ) and

Lam Research ( LRCX ) of the U.S., and Tokyo Electron ( TOELF ) of Japan.

"China is projected to maintain its position as the top

spending region ... investing over US$100 billion in the next

three years driven by its national self-sufficiency policies,"

SEMI said, adding that Chinese spending is declining from record

levels this year.

South Korea, home to memory chip makers Samsung

and SK Hynix ( HXSCF ), was seen spending $81 billion in the

same period. That compares with $75 billion in Taiwan, home to

top contract chipmaker TSMC -- which is also building

plants in the U.S., Japan and Europe.

Estimated spending in other regions was $63 billion in the

Americas, $32 billion in Japan and $27 billion in Europe.

"Notably, these regions are anticipated to more than double

their equipment investment in 2027 compared to 2024 due to

policy incentives earmarked to alleviate concerns on the supply

of crucial semiconductors," SEMI said.