MILPITAS, CA — Global fab equipment spending for frontend facilities is expected to jump 18% year-over-year to an all-time high of $107 billion in 2022, marking a third consecutive year of growth, following a 42% surge in 2021, according to SEMI.

“Crossing the $100 billion mark in spending on global fab equipment for the first time is a historic milestone for the semiconductor industry,” said Ajit Manocha, president and CEO, SEMI. “This significant achievement is a tribute to the relentless drive to add and upgrade capacity to address a diverse range of markets and emerging applications, solidifying expectations for long-term industry growth to enable electronics for the digital world.”

“Global fab equipment spending is forecast to have another healthy year in 2023 and is expected to remain above the $100 billion mark,” said Sanjay Malhotra, VP of corporate marketing and the Market Intelligence Team, SEMI. “We expect global semiconductor capacity to maintain steady growth this year and in 2023.”

Taiwan is expected to lead fab equipment spending in 2022, increasing investments 56% year-over-year to $35 billion, followed by Korea at $26 billion, a 9% rise, and China at $17.5 billion, a 30% drop from its peak last year.

Europe/Mideast is forecast to log record high spending of $9.6 billion this year, and while comparatively smaller, this would represent a staggering growth of 248% year-over-year, says SEMI. Taiwan, Korea and Southeast Asia are also expected to register record high investments in 2022. In the Americas, the report shows fab equipment spending peaking at $9.8 billion by 2023.

The global industry is expected to increase capacity 8% in 2022, after a 7% rise in 2021. Capacity growth is expected to continue increasing, rising 6% in 2023. The fab equipment industry last saw a year-over-year installed capacity growth rate of 8% in 2010, when it topped 16 million wafers per month (200mm equivalents) – nearly half of the 29 million wafers per month (200mm equivalents) projected for 2023.

Over 83% of equipment spending in 2022 will stem from capacity increases at 150 fabs and production lines, a proportion expected to edge down to 81% next year as 122 known fabs and lines add capacity.  

As expected, the foundry sector, with a share of about 50%, will account for the bulk of equipment spending in 2022 and 2023, followed by memory at 35%. The two sectors also represent most of the capacity increases.

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