On June 13, 2022, California time, SEMI pointed out in its latest quarterly World Fab Forecast report that global front-end fab equipment spending in 2022 is expected to increase by 20% compared to the same period last year. At an all-time high of $109 billion, global fab equipment spending will increase for the third consecutive year, following a 42% increase in 2021. Fab equipment investment is expected to remain strong in 2023.

Ajit Manocha, President and CEO of SEMI, said: "As shown in our latest World Fab Forecast report, global front-end fab equipment spending will cross the $100 billion threshold for the first time. This historic milestone is unprecedented today. Industry growth has an exclamation mark.”

Fab Equipment Spending by Region

Taiwan is expected to lead fab equipment spending in 2022, with investment up 52% year-over-year to $34 billion. It was followed by South Korea at $25.5 billion, up 7%. China was $17 billion, down 14% from last year's peak. Europe/Middle East is expected to spend a record $9.3 billion this year, and while smaller relative to spending in other regions, will see a staggering 176% year-on-year growth in investment. Investments in Taiwan, South Korea and Southeast Asia are also expected to hit record highs in 2023.

According to the report, fab equipment spending in the Americas will reach $9.3 billion in 2023, up 13% year-on-year after a 19% year-on-year increase in 2022, and the region remains fourth in global fab equipment spending.

The production capacity of the semiconductor industry continues to increase

According to SEMI's World Fab Forecast, global fab capacity will increase by 8% this year, following a 7% increase in 2021. Capacity is expected to continue growing by 6% in 2023. The last time fab equipment saw an 8% year-over-year growth rate was in 2010, when the monthly capacity was 16 million wafers (8-inch equivalent), which is about 29 million wafers per month (8-inch equivalent) expected in 2023. inch equivalent).

In 2022, more than 85% of equipment spending will come from the capacity growth of 158 fabs and lines, which is expected to drop to 83% next year as the capacity of the known 129 fabs and lines increases.

As expected, the foundry segment will account for around 53% of device spending in 2022 and 2023, followed by memory at 33% in 2022 and 34% in 2023. These two have the largest increase in production capacity.

The latest World Fab Forecast released by SEMI lists more than 1,400 factories and production lines around the world. For more details or subscription information, please contact SEMI Industry Research and Analysis Team szhang@semi.org, 021-60277636 or click here for more information online.