Semiconductor fab spending projected to exceed $100 billion in 2022
SEMI projects fab equipment spending for front-end facilities is expected to jump to an all-time high of $107 billion in 2022 as demand remains high across the globe.
Global fab equipment spending for front-end facilities is expected to jump 18% year-over-year (YOY) to an all-time high of $107 billion in 2022, marking a third consecutive year of growth following a 42% surge in 2021, SEMI announced in its quarterly World Fab Forecast report.
“Global fab equipment spending is forecast to have another healthy year in 2023 and is expected to remain above the $100 billion mark,” said Sanjay Malhotra, vice president of corporate marketing and the market intelligence team at SEMI in a press release. “We expect global semiconductor capacity to maintain steady growth this year and in 2023.”
“Crossing the $100 billion mark in spending on global fab equipment for the first time is a historic milestone for the semiconductor industry,” said Ajit Manocha, president and CEO of SEMI. “This significant achievement is a tribute to the relentless drive to add and upgrade capacity to address a diverse range of markets and emerging applications, solidifying expectations for long-term industry growth to enable electronics for the digital world.”
Fab equipment spending by region
Taiwan is expected to lead fab equipment spending in 2022, increasing investments 56% YoY to $35 billion, followed by Korea at US$26 billion, a 9% rise, and China at $17.5 billion, a 30% drop from its peak last year. Europe/Mideast is forecast to log record high spending of $9.6 billion this year, and while comparatively smaller, it still represents a staggering growth of 248% YoY. Taiwan, Korea and Southeast Asia are also expected to register record high investments in 2022. In the Americas, the report shows fab equipment spending peaking at $9.8 billion by 2023.
– Edited from a SEMI press release by CFE Media. SEMI is a CFE Media and Technology content partner.
Original content can be found at Control Engineering.