© SEMI Analysis | September 06, 2018
China’s semi fab capacity to reach 20% worldwide share in 2020
The China IC Ecosystem Report, a comprehensive report for the IC manufacturing supply chain, reveals that front-end fab capacity in China will grow to account for 16% of the world's semiconductor fab capacity this year, a share that will increase to 20% by the end of 2020.
With the rapid growth, China will top the rest of the world in fab investment in 2020 with more than USD 20 billion in spending, driven by memory and foundry projects funded by both multinational and domestic companies, according to the new report announced today by SEMI. The China IC Ecosystem Report, produced by SEMI, the global industry association and provider of independent electronics market research, also shows that IC Design remained the largest semiconductor sector in China for the second year in a row with USD 31.9 billion in revenue in 2017, widening its lead over the long-dominant IC Packaging and Test sector. The ascent of China’s IC Design sector comes as the region’s equipment market is expected to claim the top spot in 2020 for the first time on the strength of the continuing development of its domestic manufacturing capability. China’s maturing domestic fab sector is also benefiting domestic equipment and materials suppliers. Both groups continue to see gains in their product offerings and capabilities, particularly in silicon wafer production. The more than RMB 140 billion (USD 21.5 billion) accumulated by the National IC Fund, a critical component of the 2014 National Guideline to address China’s semiconductor trade deficit, has spurred rapid gains throughout the region’s IC supply chain. Semiconductors are China’s largest import by revenue. Phase 2 of funding aims to raise another RMB 150-200 billion (USD 23.0 - USD 30.0 billion). Encouraged by the National Guideline and favorable policies, skilled overseas talent is returning to China, triggering an explosion of domestic IC Design start-ups that are benefiting from access to investment and favorable policies, the report shows. China IC ChartOther highlights from The China IC Ecosystem Report include: Currently 25 new fab construction projects are underway or planned in China. 17 - 300 mm fabs are being tracked as part of this investment and expansion activity. Foundry, DRAM and 3D NAND are the leading segments for fab investment and new capacity in China. China’s IC Packaging and Test industry is also moving up the value chain by enhancing its technology offerings through mergers and acquisitions and building advanced capabilities to entice international integrated device manufacturers. China’s IC materials market, currently dominated by Packaging materials, became the second largest regional market for materials in 2016, a position it solidified in 2017. China’s materials market is expected to grow at a 10% CAGR from 2015 to 2019, driven primarily by the region’s new fab capacity ramp in the coming years. Fab capacity will expand at a 14% CAGR during that period.
Trust Automation appoints new COO California-based Trust Automation Inc., a supplier of automation technology for industrial and defense applications, has welcomed Teddy Ross to the company as chief operations officer, effective immediately.
TDK Ventures invests in SLD Laser TDK Ventures Inc., a subsidiary of TDK Corporation, has invested in SLD Laser, a specialist in the use of gallium nitride (GaN) in the commercialization of visible laser light sources for multiple applications including automotive, mobility, medical, and specialty lighting.
Sono Motors hits its target - community funding works The Munich-based mobility provider Sono Motors has successfully completed the extension of its campaign to finance the company and has exceeded its target of EUR 50 million.
New group structure at Mycronic aimed securing future growth Swedish creator of production equipment, Mycronic, has grown quite a bit during the last years; both organically but also through acquisitions. And with that growth some structure is in order.
Sponsored content by CMLCML manufactures Metal Substrate solutions Printed circuit boards (PCBs) plays an important role in our day to day life. Whether it’s the car you’re driving, the phone that you’re scrolling through or computers that you’re sending emails from. What happens when you use heat generating components on a PCB? That’s right, cooling is needed!
Zenuity and HP Enterprise team up to develop next-gen autonomous driving cars Hewlett Packard Enterprise (HPE) has been selected by Zenuity, a Swedish developer of software for self-driving and assisted driving cars, to provide the crucial artificial intelligence (AI) and high-performance computing (HPC) infrastructure it needs in order to develop next generation autonomous driving (AD) systems.
Honeywell, Lockheed Martin win NASA contracts Honeywell and Lockheed Martin have both announced recent contracts for the supply of key components to NASA’s Orion spacecraft fleet for the upcoming Artemis lunar missions.
Libra Industries welcomes new VP EMS provider Libra Industries has welcomed David Chavez to its leadership team as the new VP of Integrated Business Development.
Danfoss shuts down site – hundreds of jobs lost Danish industrial group, Danfoss, is taking steps to optimise and strengthen its competitiveness. This will result in a closure of the groups manufacturing site in Kolding, Denmark. Production from the site will be moved to the groups manufacturing location in Poland.
USI builds its third antenna chamber measurement system USI is currently building its third antenna chamber measurement system with a targeted completion date in the first quarter of 2020.
AT&S receives NADCAP accreditation With the NADCAP accreditation, new doors in the aerospace sector has been opened for the Austrian company.
Toshiba Carrier to establish new manufacturing subsidiary in Europe Toshiba Carrier Corporation announced the establishment of a new manufacturing subsidiary in Gniezno, a mid-western city of Poland.
Ericsson opens new R&D site in France Ericsson says it will establish a new R&D site in France with up to 300 employees, accelerating 5G momentum in Europe.
GKN team up with Delta on eDrive technology GKN Automotive and Delta Electronics are collaborating on the joint development that aims to enable the rapid acceleration of next generation integrated 3-in-1 eDrive systems of power classes from 80kW to 155kW.
Samsung’s planning Indian smartphone display plant The South Korean tech-giant is reportedly planning a USD 500 million investment to set up a display manufacturing plant in India.
Elmaticas gets green light to audit SAAB Avionics sub-suppliers. Elmaticas Jan Pedersen successfully completed the Part 21 Subpart G training, regarding auditing of Printed Circuit Boards suppliers for SAAB Avionics Systems earlier this year. Allowing Elmatica to conduct audits of SAAB Avionics sub-suppliers.
Jenoptik to keep its mechatronic activities The Executive Board of Jenoptik AG has decided to stop the process of selling the mechatronic business operating under the brand name VINCORION.
U.S. polysilicon makers laud Phase 1 of China deal The United States’ three remaining manufacturers of polysilicon expressed appreciation to President Trump and praised U.S. negotiators for securing the Chinese commitment to purchase U.S. polysilicon in the first phase of the U.S.-China trade deal.
Dupont explores divestiture of electronics unit Following its recent USD 26.2 billion deal to sell off its nutrition business, DuPont de Nemours Inc. is weighing a divestiture of its electronics unit, according to people familiar with the matter.
AMD bolsters exec leadership team AMD has announced several promotions and one new hire to its senior leadership team, in an effort to enable the company’s continued growth in the high-performance computing, graphics and visualization technologies market.
Webasto opens new battery centre in Jiaxing Webasto has inaugurated its new roof plant and battery center in Jiaxing (Zhejiang Province) close to Shanghai.
Panasonic to expand its manufacturing footprint in India Panasonic is looking to build a new wiring device factory in southern India. The new factory is scheduled to start production in autumn 2021, responding to the increased demand in the country.
Season Group strengthens wireless R&D & manufacturing capability Season Group has invested in, and installed, two high-speed and high-precision wireless communication testers - Rohde & Schwarz’s R&S CMW500 Wideband Radio Communication Tester and R&S CMW100 Communications Manufacturing Test Set.
Rocket Lab expands capabilities in So Cal Rocket Lab announced this week it will open a new facility to serve as its corporate headquarters and provide increased production capacity.
PCB Piezotronics unveils new clean rooms PCB Piezotronics Inc., a wholly owned subsidiary of MTS Systems Corporation, has announced the completion of environmentally controlled clean rooms at their DePew, New York facility.Load more news