© SEMI Org. Components | September 17, 2021
Global fab equipment spending projected to reach new high
Powered by digital transformation and other secular technology trends, global semiconductor equipment investments for front end fabs in 2022 are expected to reach nearly USD 100 billion to meet soaring demand for electronics after topping a projected USD 90 billion this year, both new records,
The new fab equipment spending records will mark a rare three consecutive years of growth that began in 2020, bucking the historical cyclical trend of a one- or two-year expansion followed by a year or two of tepid growth or declines. The semiconductor industry last saw more than two consecutive years of growth in the mid-1990s. The foundry sector will account for the bulk of fab equipment investments in 2022, with more than USD 44 billion in spending, followed by the memory sector at over USD 38 billion. Both DRAM and NAND also show large increases in 2022 with jumps in spending to US$17 billion and US$21 billion, respectively. Micro/MPU investments will reach approximately USD 9 billion, discrete/power USD 3 billion, analog US$2 billion, and other devices about USD 2 billion next year. Regionally in 2022, Korea will lead in fab equipment spending at US$30 billion, followed by Taiwan at USD 26 billion, and China at nearly USD 17 billion. Japan will take the fourth spot with almost USD [i][/i]9 billion in fab equipment spending. While Europe/Mideast will be in fifth place at USD 8 billion, the region is expected to post standout year-over-year percentage growth of 74% in 2022. In the Americas and Southeast Asia, spending is projected to reach more than USD 6 billion and USD2 billion, respectively.
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