The semiconductor industry’s appetite for capacity expansions is pushing front-end equipment spending past 100 billion dollars for the first time, according to a report released by Semi. According to the trade organization, global fab equipment spending for front-end facilities is expected to jump 18 percent year-over-year to an all-time high of 107 billion dollars in 2022. “This significant achievement is a tribute to the relentless drive to add and upgrade capacity to address a diverse range of markets and emerging applications, solidifying expectations for long-term industry growth to enable electronics for the digital world,” comments Semi CEO Ajit Manocha.
Semi’s World Fab Forecast report shows the global semiconductor industry increasing capacity by 8 percent this year after a 7 percent rise in 2021. Capacity growth is expected to continue increasing, rising 6 percent in 2023. The fab equipment industry last saw a YoY installed capacity growth rate of 8 percent in 2010, when it topped 16 million wafers per month (200-mm equivalents) – nearly half of the 29 million wafers per month (200-mm equivalents) projected for 2023.
The foundry sector, with a share of about 50 percent, will account for the bulk of equipment spending in 2022 and 2023, followed by memory at 35 percent. The two sectors also represent most of the capacity increases.