SAN JOSE --  Semiconductor fabrication equipment spending rose 20% in 2014 and is forecast to rise another 15% this year, according to a new report from SEMI.

The trade group further expects the recovery to last into 2016, with spending forecast to rise two to four percent.

Spending on construction projects, which typically represents new cleanroom projects, will decline 32% but is expected to increase 32% in 2016, SEMI added.

Fab Equipment/Fab Construction (2013-2016)

SEMI World Fab Forecast and its related Fab Database reports track any equipment needed to ramp fabs, upgrade technology nodes, and expand or change wafer size, including new equipment, used equipment, or in-house equipment and spending on facilities for installation.

The forecast tracks fab equipment new or used, in-house equipment, and spending on facilities for installation.

The association said capex for most of the large semiconductor companies is expected to increase 8% in 2015, and 3% in 2016, driven by new fab construction projects and also ramp of new technology nodes.

Fab equipment spending is expected to increase 15% this yuear, then slow into 2016. However, no negative change is currently expected, SEMI said. Over the past 25 years, a downturn has typically followed successive years, but SEMI said current developments point to a "small but positive" bump in 2016.

SEMI expects Taiwan to lead the geographical expenditures, $11.9 billion, followed by South Korea at $9 billion, the Americas at $7 billion, China ($4.7 billion) and Japan ($4 billion).

New facilities beginning construction in 2015 and 2016 will start equipping in 2016 or later. SEMI’s data show that seven new facilities will start construction in 2015 (including one LED and one shell). In 2016, construction will possibly begin on five or six new fabs.

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