Paul van Gerven
21 December 2022

Global wafer fab equipment sales are set to decline 16.8 percent next year to 91.2 billion dollars, Semi estimates. The contraction follows three consecutive years of growth, reaching a record 108.5 billion dollars this year – an increase of 5.9 percent YoY. Equipment makers won’t have to wait long for a rebound, however, which is expected as soon as 2024.

“Record fab constructions have driven total semiconductor manufacturing equipment sales to cross the 100-billon-dollar mark for a second straight year,” says CEO Ajit Manocha of Semi. “Emerging applications in multiple markets have set expectations for significant semiconductor industry growth this decade, which will necessitate further investments to expand production capacity.”

Semi EMDS
Source: Semi

In a separate report, Semi said a record number of 33 new semiconductor manufacturing facilities have started construction this year, and 28 more in 2023. The World Fab Forecast is currently tracking 84 fabs, for which the semiconductor industry will spend more than 500 billion dollars by 2024.

Semi’s 2023 capex projection is in line with IC Insights’ predicted drop of 19 percent – the largest decline since the 2008-2009 global financial meltdown.

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