SEMI: Global fab equipment spending to rise to US$92bil in 2024

KUALA LUMPUR: Global fab equipment spending for front-end facilities is expected to decrease 22% year-over-year (YoY) to US$76bil in 2023 from a record high of US$98bil in 2022, before rising 21% YoY to US$92bil in 2024 to reclaim lost ground, according to Semiconductor Equipment & Materials International (SEMI).

In a statement, SEMI said next year’s fab equipment spending recovery would 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,” president and CEO Ajit Manocha said.

“The report points to a healthy 21% uptick in equipment investment next year.”

According to SEMI, Taiwan is expected to retain the global lead in fab equipment spending in 2024 with US$24.9bil in investments, a 4.2% YoY increase, followed by Korea at US$21bil, a YoY 41.5% jump.

China is forecast to place third in equipment spending worldwide in 2024, US export controls are expected to limit the region’s spending to US$16bil, comparable to the region’s investments in 2023.

The Americas is expected to remain the fourth largest region in spending with a record US$11bil in investments in 2024, a 23.9% YoY increase.

Europe & Mideast is also forecast to log record investments next year, increasing spending by 36% to US$8.2bil.

Fab equipment spending in Japan and Southeast Asia is expected to increase to US$7bil and US$3bil, respectively, in 2024.

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Semiconductor , fab equipment , SEMI


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