KUALA LUMPUR (Oct 13): Global installed capacity for power and compound semiconductor fabs is projected to top 10 million wafers per month (WPM) for the first time in 2023, growing to 10.24 million WPM (in 200mm equivalents) and climbing to 10.6 million WPM in 2024.

The US-based Semiconductor Equipment & Materials International (SEMI) in its Power & Compound Fab Report to 2024 released on Tuesday, the demand will be driven by pent-up demand for automotive electronics caused by semiconductor supply chain disruptions caused by the pandemic.

Semiconductor device fabrication is the process used to manufacture semiconductor devices, typically the metal–oxide–semiconductor devices used in the integrated circuit chips such as modern computer processors, microcontrollers, and memory chips.

SEMI said China is expected to claim the largest share of installed capacity – 33% – by 2023, followed by Japan at 17%, Europe and the Mideast at 16%, and Taiwan at 11%, proportions that are expected to change little as the industry remains on track to add more than 360,000 WPM in 2024.

The report added that 63 companies are expected to add more than 2 million WPM (in 200mm equivalents) from 2021 through 2024.

It said Infineon, Hua Hong Semiconductor, STMicroelectronics and Silan Microelectronics will lead the way, together adding a projected 700,000 WPM.

Installed capacity for the power and compound fab industry grew 5% year-over-year (y-o-y) in 2019 and 3% in 2020 before surging 7% in 2021.

Y-o-y growth is projected to remain strong at 6% in 2022 and 5% in 2023 as the industry tops the 10 million WPM mark.

SEMI said the industry is also adding production facilities.

It said that from 2021 through 2024, 47 high-probability facilities and lines (R&D to high volume, including epitaxial wafers) are expected to go online to bring the industry total to 755, a number that could be eclipsed if new facilities and lines are announced.

The SEMI Power & Compound Fab Report to 2024 covers 957 facilities and lines operational over the 12 years from 2013 to 2024, including facilities that are or will be closed, and new facilities starting operation.