Global 300mm fab spending to boom through 2023, says SEMI - MIDA | Malaysian Investment Development Authority
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Global 300mm fab spending to boom through 2023, says SEMI

Global 300mm fab spending to boom through 2023, says SEMI

04 Nov 2020

Global 300mm fab investments in 2020 will grow by 13% year-on-year (y-o-y) to eclipse the previous record high set in 2018 and log another banner year for the semiconductor industry in 2023, according to the US-based Semiconductor Equipment and Materials International (SEMI).

In its “300mm Fab Outlook to 2024” released yesterday, SEMI said the Covid-19 pandemic had sparked a surge in fab spending this year by accelerating digital transformations worldwide, and the increase is expected to stretch into 2021.

It said powering the growth is rising demand for cloud services, servers, laptops, gaming and healthcare technology.

SEMI said besides fast-evolving technologies such as 5G, the Internet of things (IoT), automotive, artificial intelligence (AI) and machine learning that continue to fuel demand for greater connectivity, large data centres and big data are also behind the increase.

SEMI president and chief executive officer (CEO) Ajit Manocha said the Covid-19 pandemic is accelerating a digital transformation sweeping across nearly every industry imaginable to reshape the way we work and live.

“The projected record spending and 38 new fabs reinforce the role of semiconductors as the bedrock of leading-edge technologies that are driving this transformation and promise to help solve some of the world’s greatest challenges,” he said.

SEMI said the growth in semiconductor fab investments will continue in 2021 but at a slower rate of 4% y-o-y.

Mirroring previous industry cycles, the report also predicted a mild slowdown in 2022 and another slight downturn in 2024 following a US$70 billion record high in 2023.

Source: The Edge Markets