KUALA LUMPUR (June 14): Global fab equipment spending for front-end facilities is expected to increase 20% year-on-year (y-o-y) to an all-time high of US$109 billion in 2022.
In a statement on Monday (June 13), the US-based Semiconductor Equipment Materials International (SEMI) said this marked a third consecutive year of growth following a 42% surge in 2021.
SEMI in its latest quarterly World Fab Forecast report said fab equipment investment in 2023 is expected to remain strong.
SEMI president and CEO Ajit Manocha said the global semiconductor equipment industry remains on track to cross the US$100 billion threshold for the first time.
“This historic milestone puts an exclamation point on the current run of unprecedented industry growth,” he said.
By region
SEMI said Taiwan is expected to lead fab equipment spending in 2022, increasing investments 52% y-o-y to US$34 billion, followed by South Korea at US$25.5 billion, a 7% rise, and China at US$17 billion, a 14% drop from its peak last year.
It said Europe/Mideast is forecast to log record high spending of US$9.3 billion this year and, while comparatively smaller than outlays in other regions, its investments would represent a staggering growth of 176% y-o-y.
Taiwan, South Korea and Southeast Asia are also expected to register record-high investments in 2023.
In the Americas, the report shows fab equipment spending reaching US$9.3 billion in 2023, a 13% y-o-y rise following a 19% y-o-y increase in 2022, with the region retaining its fourth-place ranking both years in worldwide fab equipment spending.
Semicon
The SEMI World Fab Forecast report shows the global industry increasing capacity by 8% this year after a 7% rise in 2021.
Capacity growth is expected to continue in 2023, rising 6%.
The fab equipment industry last saw a y-o-y growth rate of 8% in 2010, when it topped 16 million wafers per month (200mm equivalents) — nearly half of the 29 million wafers per month (200mm equivalents) projected for 2023.
Over 85% of equipment spending in 2022 will stem from capacity increases at 158 fabs and production lines, a proportion expected to edge down to 83% next year as 129 known fabs and lines add capacity.
SEMI said that as expected, the foundry sector, with a share of about 53%, will account for the bulk of equipment spending in 2022 and 2023, followed by memory at 33% in 2022 and 34% in 2023.
It said the two sectors also account for the largest capacity increases.