As reported by SEMI in its most recent quarterly World Fab Forecast, the global semiconductor industry is poised for significant growth. In 2024, it’s anticipated that semiconductor capacity will surge by 6.4%, reaching a new peak of over 30 million wafers per month (wpm). This follows a 5.5% increase in 2023, where capacity hit 29.6 wpm.
Subheading: Key Drivers of Growth
The expected growth in 2024 is attributed to several factors. Advances in leading-edge logic and foundry sectors, along with burgeoning applications in generative AI and high-performance computing (HPC), are major contributors. Additionally, a rebound in the demand for chips is also playing a crucial role. However, it’s noteworthy that the expansion rate decelerated in 2023 due to a dip in market demand and subsequent inventory adjustments.
Ajit Manocha, SEMI President and CEO, highlights the resurgence in market demand and increased government incentives as pivotal factors boosting fab investments across major chipmaking regions. This surge is further fueled by the strategic importance of semiconductor manufacturing in terms of national and economic security.
Subheading: Regional Contributions and Projections
The report details the global semiconductor industry’s plan to launch 82 new volume fabs between 2022 and 2024, with a significant number of projects expected in the next two years.
China’s Dominance
China is leading the way in semiconductor industry expansion. With government funding and incentives, Chinese chip manufacturers are expected to initiate 18 new projects in 2024, predicting year-over-year capacity growths of 12% and 13% in 2023 and 2024, respectively.
Taiwan’s Steady Growth
Taiwan is projected to maintain its position as the second-largest region in terms of semiconductor capacity. The region is set to experience capacity increases of 5.6% and 4.2% in the next two years, with the initiation of five new fabs in 2024.
Other Key Regions
Korea and Japan are also notable players, with Korea expecting a 5.4% increase in capacity and Japan a 2% increase as they commence operations of new fabs. The Americas, Europe & the Middle East, and Southeast Asia are also on track to boost their chip capacities through the introduction of new fabs.
The Foundry Segment
Foundries are forecasted to lead in semiconductor equipment purchases, with capacity expansions reaching 9.3 million wpm in 2023 and a record 10.2 million wpm in 2024.
Memory and Other Segments
While the memory segment witnessed a slowdown in 2023, gradual growth is expected in the DRAM and 3D NAND sectors. The discrete and analog segments, driven by vehicle electrification, are also projected to see substantial growth.
Conclusion: The Semiconductor Industry on the Cusp of a New Era
The latest SEMI World Fab Forecast report, which encompasses data on 1,500 facilities and lines globally, including 177 volume facilities and lines set to start operations in 2023 or later, paints a picture of a vibrant and rapidly evolving semiconductor industry. With significant expansions on the horizon, the industry stands at the threshold of a new era of technological advancements and economic growth. This upcoming surge in capacity, driven by global demand and technological innovation, signals a promising future for the semiconductor industry worldwide.
