Wednesday, September 15, 2021
Powered by digital transformation and other secular technology trends, global semiconductor equipment investments for front end fabs in 2022 are expected to reach nearly $100 billion to meet soaring demand for electronics after topping a projected $90 billion this year, both new records, SEMI highlighted in its World Fab Forecast report.
The new fab equipment spending records will mark a rare three consecutive years of growth that began in 2020, bucking the historical cyclical trend of a one- or two-year expansion followed by a year or two of tepid growth or declines. The semiconductor industry last saw more than two consecutive years of growth in the mid-1990s.
The foundry sector will account for the bulk of fab equipment investments in 2022, with more than $44 billion in spending, followed by the memory sector at over $38 billion. Both DRAM and NAND also show large increases in 2022 with jumps in spending to $17 billion and $21 billion, respectively. Micro/MPU investments will reach approximately $9 billion, discrete/power $3 billion, analog $2 billion, and other devices about $2 billion next year.
Regionally in 2022, Korea will lead in fab equipment spending at $30 billion, followed by Taiwan at $26 billion, and China at nearly $17 billion. Japan will take the fourth spot with almost $9 billion in fab equipment spending. While Europe/Mideast will be in fifth place at US$8 billion, the region is expected to post standout year-over-year percentage growth of 74% in 2022. In the Americas and Southeast Asia, spending is projected to reach more than $6 billion and $2 billion, respectively.
The World Fab Forecast report lists 1,417 facilities and lines globally, including 129 facilities and lines starting volume production in 2021 and beyond.
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