Global fab equipment spending to hit almost US$100bil in 2022

PETALING JAYA: Global semiconductor equipment investments for front end fabs in 2022 are expected to reach nearly US$100bil to meet soaring demand for electronics after topping a projected US$90bil this year, both new records, SEMI said in its World Fab Forecast report.

SEMI said the new fab equipment spending records would mark a rare three consecutive years of growth that began in 2020, bucking the historical cyclical trend of a one- or two-year expansion followed by a year or two of tepid growth or declines.

The semiconductor industry last saw more than two consecutive years of growth in the mid-1990s.

“The foundry sector will account for the bulk of fab equipment investments in 2022, with more than US$44bil in spending, followed by the memory sector at over US$38bil.

“Both DRAM and NAND also show large increases in 2022 with jumps in spending to US$17bil and US$21bil, respectively,” SEMI said.

It added that micro/MPU investments will reach approximately US$9bil, discrete/power US$3bil, analog US$2bil, and other devices about US$2bil next year.

SEMI noted that regionally in 2022, Korea will lead in fab equipment spending at US$30bil. It will be followed by Taiwan at US$26bil, and China at nearly US$17bil.

Japan will take the fourth spot with almost US$9bil in fab equipment spending.

“While Europe/Mideast will be in fifth place at US$8 billion, the region is expected to post a standout year-over-year percentage growth of 74% in 2022.

“In the Americas and Southeast Asia, spending is projected to reach more than US$6bil and US$2bil, respectively,” it added.

The World Fab Forecast report lists 1,417 facilities and lines globally, including 129 facilities and lines starting volume production in 2021 and beyond.

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SEMI , semiconductor , fabs , foundry


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