The SEMI World Fab Forecast report anticipates a 6.4% increase in capacity in 2024, reaching over 30 million wafer starts per month (wpm). Driven by serious government funding, China is predicted to lead the world in expanding semiconductor production, with a total of 18 new fabs expected to begin production in 2024.

The rather substantial 6.4% increase in wafer processing capacity follows a 5.5% rise to 29.6 million WSPM in 2023. The expansion is primarily driven by developments in leading-edge logic by Intel, TSMC, and Samsung Foundry, as demand for processors aimed at artificial intelligence (AI) and high-performance computing (HPC) applications continues to grow rapidly.

SEMI expects as many as 82 new fabs to go online from 2022 through 2024, which includes 11 projects slated for 2023 and an ambitious 42 projects in 2024. These new facilities will use a range of wafer sizes from 100mm to 300mm and dozens of mature and leading-edge process technologies, indicating a diverse expansion across the semiconductor industry.

China is poised to lead this expansion, bolstered by government funding and various incentives for chipmakers. In 2023, Chinese chip manufacturers are forecasted to grow capacity by 12% year-over-year (YoY), reaching 7.6 million WSPM. This growth is projected to accelerate to 13% in 2024, reaching a capacity of 8.6 million WSPM. A total of 18 new fabs are expected to start operations in China in 2024.

Other regions are also contributing to the increase in global chip production capacity. Taiwan is set to remain the second-largest region in semiconductor capacity, with a projected increase to 5.4 million WSPM in 2023 and 5.7 million WSPM in 2024. South Korea and Japan follow, with South Korea expected to reach 5.1 million WSPM in 2024. The Americas, Europe, Mideast, and Southeast Asia are also gearing up for growth, with each region launching several new fabs in 2024.

In terms of specific segments within the semiconductor industry, the foundry suppliers are forecasted to lead in equipment purchases, increasing their capacity to a record 10.2 million WSPM in 2024. Despite a slowdown in 2023, the memory segment, including DRAM and 3D NAND, is expected to increase capacity gradually. The discrete and analog segments, driven by vehicle electrification, are also projected to grow significantly, highlighting the diverse and dynamic nature of the global semiconductor industry's expansion.

By: DocMemory
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