After surging 36% in 2021, semiconductor industry capital spending is forecast to jump 24% in 2022 to a new all-time high of US$190.4 billion, according to IC Insights.
If the industry capital spending increases by 10% or more in 2022, it would also mark the first three-year period of double-digit spending increases in the semiconductor industry since the 1993-1995 period, IC Insights said.
With many supply chains strained or broken during the pandemic, the electronics industry, in many cases, was left unprepared for the current rebound in demand. Booming demand has pushed most fab utilization rates well above 90% with many of IC foundries operating at 100% utilization. With such strong utilization rates and the expectations of continued high demand, the combined semiconductor industry capital spending in 2021 and 2022 is forecast to reach US$344.3 billion, IC Insights indicated.
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