Eighteen new semiconductor fabs start construction in 2025
The semiconductor industry is gearing up for a major expansion, with 18 new fabs set to start construction in 2025, according to the latest World Fab Forecast report from SEMI. These projects, spanning three 200mm and fifteen 300mm facilities, will primarily start operations between 2026 and 2027.
The Americas and Japan are leading the charge, each with four projects planned. China and Europe & the Middle East are tied with three projects apiece, while Taiwan plans two new fabs. Korea and Southeast Asia each have one project in the pipeline.
"The semiconductor industry has reached a pivotal juncture, with investments driving both leading-edge and mainstream technologies to meet evolving global demands," says Ajit Manocha, SEMI President and CEO, in a press release. "Generative AI and high-performance computing are fueling advancements in the leading-edge logic and memory segments, while mainstream nodes continue to underpin critical applications in automotive, IoT and power electronics. The construction of 18 new semiconductor fabs set to begin in 2025 demonstrates the industry's commitment to support innovation and significant economic growth."
Covering 2023 to 2025, the report shows that the global semiconductor industry plans to start operation of 97 new high-volume fabs. This includes 48 projects in 2024 and 32 projects set to launch in 2025, with wafer sizes ranging from 300mm to 50mm.
Advanced nodes lead semiconductor expansion
Semiconductor capacity is projected to further accelerate, with a 6.6% yearly growth rate forecast to total 33.6 million wafers per month for 2025. This expansion will be primarily driven by leading-edge logic technologies in high-performance computing (HPC) applications and the increasing penetration of generative AI in edge devices.
Advanced node production – 7nm and below – is expected to lead industry growth, with a projected annual increase of 16% in wafer capacity, reaching 2.2 million wafers per month in 2025. This surge is driven by the escalating computational demands of large language models (LLMs).
More mainstream nodes – 8nm to 45nm – crucial for automotive and IoT applications, will also see steady growth, adding 6% capacity to exceed 15 million wpm in 2025.
SEMI's latest update to the World Fab Forecast report, lists more than 1,500 facilities and lines globally, including 180 volume facilities and lines with various probabilities expected to start operation in 2025 or later.
