Global fab equipment spending is expected to decline 22% year-on-year from a record $98 billion in 2022 to $76 billion in 2023, before growing 21% year-on-year to $92 billion in 2024, according to SEMI’s latest report.
Next year’s fab equipment spending recovery will be driven in part by the end of the semiconductor inventory correction in 2023 and strengthening demand for semiconductors in the high-performance computing (HPC) and automotive segments.
“This quarter’s SEMI World Fab Forecast update offers our first look ahead to 2024, highlighting the steady global expansion of fab capacity to support future semiconductor industry growth driven by the automotive and computing segments and a host of emerging applications,” said Ajit Manocha, SEMI president and CEO. “The report points to a healthy 21% uptick in equipment investment next year.”
Taiwan region is expected to retain the global lead in fab equipment spending in 2024 with US$24.9 billion in investments, a 4.2% YoY increase, followed by Korea at US$21 billion, a YoY 41.5% jump. While mainland China is forecast to place third in equipment spending worldwide in 2024, U.S. export controls are expected to limit the region’s spending to US$16 billion, comparable to the region’s investments in 2023.
Foundry segment continues to lead semiconductor industry expansion
With more suppliers providing foundry services to increase global capacity, the foundry segment is expected to lead the semiconductor expansion in 2023 with US$43.4 billion in investments, a 12.1% YoY decline, and US$48.8 billion, a 12.4% increase, in 2024. Memory is forecast to place second in global spending in 2023 despite a 44.4% YoY decline to US$17.1 billion, with investments rising to US$28.2 billion next year.
Unlike other segments, analog and power will see a steady expansion with a forecast spending increase of 1.3% to US$9.7 billion in 2023 on the strength of stable growth in the automotive market. Investments by the segment are expected to remain flat next year.
The latest update of the SEMI World Fab Forecast report, published in March, lists 1,470 facilities and lines globally, including 142 volume facilities and lines with various probabilities that are expected to start production in 2023 or later.
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