© pichetw dreamstime.com
Components | December 29, 2020
7/5nm processes drive foundry capital spending
Following spending of $106.1 billion in 2018 and $102.5 billion in 2019, worldwide semiconductor capital spending is expected to grow 6% to $108.1 billion in 2020, writes market researcher IC Insights.
The foundry segment is forecast to represent 34% of semiconductor capital spending in 2020, the largest portion of all product/segment types. Foundry also held the largest share of spending in 2014, 2015, 2016, and 2019. With a focus on being the leading provider of 7/5nm process technology, TSMC accounted for essentially all of the increase in foundry capital expenditures in 2019. In 2020, IC Insights expects SMIC to represent 39% of the foundry segment’s forecasted $10.1 billion increase in spending with TSMC representing 20% of the increase.
Worldwide Capital Spending by Product Type
Foundry is also expected to post the largest percentage increase in capital spending at 38% this year, with the next highest rate expected to be registered by the logic segment with only a 4% increase.
The segment with the second-most spending in 2020 is forecast to be the Flash/Non-Volatile memory category. The vast majority of this spending is for 3D NAND technology advancement. Spending for the Flash/Non-Volatile segment is forecast to be flat at $22.7 billion this year, which is 18% less than the $27.8 billion spent in 2018, the peak year for expenditures in this product category. Spending for flash memory is expected to be 37% greater than the outlays forecast for the DRAM segment in 2020.
In 2017 and 2018, DRAM suppliers invested heavily in new fabs and equipment for sub-20nm process technology needed to manufacture next-generation devices. DRAM capex increased 79% in 2017 and 44% in 2018. With the build out largely completed, DRAM capital spending fell 17% in 2019 and is expected to decline another 13% in 2020. Despite the reduced spending on DRAM this year, Samsung, SK Hynix, and Micron are still expected to be ranked among the top five largest capex spenders for 2020.
The IC industry has been one of the most resilient markets during this corona-virus plagued year. Although causing a deep global recession in 2020, the Covid-19 pandemic accelerated a global digital transformation resulting in 21 of 33 IC product categories that survived (and even thrived) with positive growth this year, and a 6% boost in semiconductor capital spending. With the promise of a vaccine being developed and administered worldwide next year, a strong global GDP rebound and double-digit IC market increase are forecast for 2021.
| Product | 18 ($B) | 18/17% change | 19 ($B) | 19/18% change | 20 ($B) | 20/19% change |
| MPU/MCU | 15.0 | 38% | 16.9 | 12% | 15.5 | -8% |
| % of total | 14% | 17% | 14% | |||
| Logic | 8 | 27% | 8.5 | 6% | 8.9 | 4% |
| % of total | 8% | 8% | 8% | |||
| Foundry | 22.3 | -16% | 26.2 | 18% | 36.3 | 38% |
| % of total | 21% | 26% | 34% | |||
| DRAM/SRAM | 23.2 | 44% | 19.1 | -17% | 16.6 | -13% |
| % of total | 22% | 19% | 15% | |||
| Flash/Non-Volatile | 27.8 | 2% | 22.6 | -19% | 22.7 | 0% |
| % of total | 26% | 22% | 21% | |||
| Analog/other | 9.7 | 13% | 9.0 | -7% | 8.2 | -10% |
| % of total | 9% | 9% | 8% | |||
| Total | 106.1 | 11% | 102.5 | -3% | 108.1 | 6% |
Fusion Sourcing Group to represent Intelligent Memory
Intelligent Memory (IM), a manufacturer of industrial-grade memory product solutions, has signed Fusion Sourcing Group as its representative in the Northeast United States.
Arm names new Chief Financial Officer
Arm has appointed Jason Child as Chief Financial Officer (CFO). Child brings more than 30 years of experience in leadership at high-growth companies and scaling global finance functions to his new role.
Spain launches foundry for III-V semiconductors
Spain launches its first commercial foundry for III-V Semiconductors targeting integrated photonics.
Silicon Labs expands in India – opens new office in Hyderabad
Silicon Labs has officially inaugurated its new office in Hyderabad, located at Salarpuria Sattva Knowledge City. This new office will also be Silicon Labs' largest global centre for engineering and wireless connectivity innovation.
Poland and Taiwan sign agreement on semiconductor collaboration
The Polish Office in Taipei and the Taipei Representative Office in Poland have signed a memorandum of understanding (MoU) to establish the Taiwanese-Polish working group on semiconductors.
Ad
Kioxia to adjust flash memory production by 30% at two plants
Japan’s Kioxia Corporation says that it will reduce the production volume at two of its flash memory plants.
KLA to build a new R&D and manufacturing facility in Wales
KLA Corporation says that it plans to build a new R&D and manufacturing center for the SPTS division, in Newport, Wales, UK.
Additional DoD funding reaches SkyWater
US semiconductor foundry SkyWater Technology says that the Department of Defense (DoD) has awarded the company up to USD 99 million as a continuation of the previous initiative to advance onshore production capabilities for strategic radiation-hardened (rad-hard) electronics.
Comet Technologies expands manufacturing in Malaysia
Comet Technologies says that it aims to double its production capacity in Malaysia – the company will add 30,000 square feet and about 200 employees to its operations in the country.
Henkel acquires Thermexit business from Nanoramic
Henkel has completed the acquisition of the Thermal Management Materials business of Nanoramic Laboratories (Nanoramic) headquartered in Boston, Massachusetts, USA, marketed under the brand Thermexit.
Mobix Labs to acquire EMI Solutions
Fabless semiconductor company, Mobix Labs, says it has signed a definitive agreement to acquire EMI Solutions, an Irvine-based manufacturer of electromagnetic interference (EMI) filtering products.
Hexatronic acquires the data center specialist
Swedish Hexatronic Group has signed an agreement to acquire 90% of the shares in UK-based Impact Data Solutions Limited (IDS Group).
Kontron AIS takes over LUCOM
As of September first, 2022, Kontron AIS GmbH has taken over LUCOM GmbH and thus strengthen its portfolio as an IIoT solution provider for industrial software and industrial automation.
VinFast and Renesas ink strategic partnership
Vietnamese EV maker, VinFast, is expanding its collaboration with Japanese semiconductor company Renesas to include automotive technology development of EVs and delivery of system components.
Intel's close to making final selection for new Italian site
The Italian government and Intel have reportedly selected the town of Vigasio in the northeastern Veneto region as their preferred site for the company’s future chip factory in Italy.
FPT Software launches chipmaking subsidiary
Vietnamese ICT company, FPT Software, announces that it has launched a new chip subsidiary, FPT Semiconductor, meaning that the company is entering the booming semiconductor industry.
Habia Cable opens its brand new Polish production facility
Habia Cable has officially inaugurated its new, purpose-built, production facility in Poland.
Astera Labs opens new Vancouver location
Connectivity solutions specialist Astera Labs has officially opened Astera Labs Vancouver – a new office and lab to support the company’s development of interconnect technologies for AI and Machine Learning architectures.
Qualcomm's automotive design-win pipeline expands to $30B
Qualcomm says that its automotive design-win pipeline has grown to USD 30 billion, driven by increased adoption of the company's Snapdragon Digital Chassis solutions across the auto industry.
Henkel expands South Dakota facility
Henkel has broken ground on a 35,000 square-foot expansion of its production facility in Brandon, South Dakota. The expanded facility will add new manufacturing muscles and allow Henkel to increase production of thermal interface materials used to manufacture electronics and electric vehicles.
Mouser adds 35+ new manufacturer brands to its line card
Mouser Electronics continues to expand its line card by adding 36 new manufacturers through the end of August 2022.
Intelligent Memory expands its reach in Europe
The manufacturer of industrial-grade memory product solutions, has won three new strategic distribution partners in Europe – covering the Benelux region, Poland and the UK.
Indium opens the doors to its expanded operations in Rome
In late August 2022 Indium Corporation opened the doors to its latest expansion. The company's facility in Rome, New York is now Indium's largest manufacturing center globally in terms of square footage.
Load more news
