Global fabrication equipment spending to rebound in 2H

  • Economy
  • Wednesday, 06 May 2020


KUALA LUMPUR: Global fab equipment spending for power and compound devices is expected to rebound in the second half of 2020 to US$6.9bil, says US-based Semiconductor Equipment and Manufacturing Industry (SEMI).

The rebound would be to meet resurgent end-product demand, it said on Wednesday in its power and compound fabrication report to 2024.

“The 2020 rally will help blunt a drop in annual spending, now projected at 8%, as fabs ride the Covid-19 recovery wave, ” SEMI said.

Power and compound devices are used to control electrical energy for devices across an array of industries such as computing, communications, energy and automotive.

SEMI said since the widespread enactment of stay-at-home orders to curb the spread of Covid-19, demand for servers, laptops and other electronics at the heart of online communications has surged.

The trade boy said the latest report lists more than 800 power- and compound-related facilities and lines and covers investments and capacities for the 12 years from 2013 through 2024.

In 2019, the report tracked 804 facilities and lines with installed capacity of eight million wafers per month (in 200mm equivalent wafers).

“By 2024,38 new facilities and lines will begin operation, fueling installed capacity growth of a cumulative 20 percent to 9.7 million wafers per month.

“In breakdowns by region, China will expand power and compound fab capacity by 50% and 87%, respectively, from 2019-2024, more than any other region.

“Over the same period, Europe/Mideast and Taiwan will lead the way in adding power fab capacity, while the Americas and Europe/Mideast will be among those regions adding compound fab capacity, ” it said.

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