SEMI: global semiconductor industry invests $500 billion to build 84 new fabs by 2024

Semiconductor Equipment Manufacturers International (SEMI) released its latest World Fab Forecast report, projecting the worldwide semiconductor industry will invest more than $500 billion in 84 volume chipmaking facilities by 2024.

Fabs start construction from 2021 to 2023, with segments including automotive and high-performance computing fueling the spending increases. SEMI said projected growth in global factory count includes a record high of 33 new semiconductor manufacturing facilities starting construction in 2022 and 28 more in 2023.

Source: SEMI, compiled by DIGITIMES, December 2022

Thanks to government subsidies promised by the CHIPS and Science Act, the US is seeing the construction of 18 new facilities from 2021-2023.

China will build 20 fabs planned for mature technologies, according to the report.

Europe and the Middle East region's investment in semiconductor facilities is also reaching a historical high with the encouragement of the EU Chips Act, starting to construct 17 new fabs from 2021-2023.

Taiwan is expected to start construction on 14 new facilities, while Japan and Southeast Asia are each projected to begin building six new facilities over the forecast period. Korea is forecast to start construction on three large facilities, according to the SEMI report.

Ajit Manocha, SEMI president and CEO said, "The latest SEMI World Fab Forecast update reflects the increasing strategic importance of semiconductors to countries and a wide array of industries worldwide and underscores the significant impact of government incentives in expanding production capacity and strengthening supply chains."

"With the bullish long-term outlook for the industry, rising investments in semiconductor manufacturing are critical to laying the groundwork for secular growth driven by a diverse range of emerging applications," said Manocha.

Source: SEMI, compiled by DIGITIMES, December 2022