Wednesday, January 8, 2025

SEMI World Fab Forecast Highlights Strong Fab Investments and New Fabs in 2025

The latest World Fab Forecast by SEMI, published on December 19, 2024, highlights strong growth in global semiconductor manufacturing from 2023 to 2025. Key takeaways from the report include increased investments in fab equipment and capacity expansions across both memory and foundry segments, indicating a resilient and growing industry.


SEMI’s latest World Fab Forecast report reveals that 18 new semiconductor fabs will begin construction in 2025, including three 200mm and fifteen 300mm facilities, primarily in the Americas, Japan, China, and Europe. These projects, set to start operations between 2026 and 2027, reflect the industry's focus on advanced nodes for AI and high-performance computing (HPC). Total semiconductor capacity is expected to grow at a 6.6% annual rate, driven by leading-edge logic technologies, while mainstream and mature nodes continue to support automotive, IoT, and power applications. Foundries remain key drivers of capacity growth, with generative AI demand boosting memory markets, particularly high-bandwidth memory (HBM). [Semiconductor Digest, LINK below]

For 2024, global fab equipment spending is projected to rise by 8% year-over-year to approximately 111 billion dollars, surpassing previous projections. The foundry segment is expected to account for 59 billion dollars of this investment, marking a 2% increase from 2023. The memory segment is set to see the most significant growth, with spending projected to jump by 50% to 34 billion dollars. This surge in memory investments reflects a rebound from the recent downturn and aligns with rising demand for advanced semiconductor technologies.

Looking ahead to 2025, fab equipment spending is expected to grow by an additional 4%, reaching approximately 116 billion dollars. The foundry segment will likely invest around 65 billion dollars, while the memory segment is forecasted to maintain robust spending at 33 billion dollars.

In terms of capacity expansion, the report predicts continued growth in both memory and foundry capacity. Memory capacity is expected to grow by 4% in 2024 and 3% in 2025, while foundry capacity, including pure-play foundries and IDM fabs, is projected to see 12% growth in 2024 and 11% in 2025. This reflects strong demand for advanced logic chips and specialty processes.

On the construction front, investments in new fab construction are expected to dip slightly in 2024, with a 5% decline to 39 billion dollars. However, SEMI anticipates 45 new construction projects for volume fabs, excluding R&D and pilot facilities, between 2025 and 2030. These projects are expected to support long-term demand growth across various segments, including AI chips, automotive semiconductors, and memory.

In 2025, the industry is expected to see the completion of several new fabs that are currently under construction. These new fabs will be crucial for meeting growing demand for advanced semiconductor technologies and are expected to bring significant additional capacity online. Many of these facilities will focus on next-generation nodes, particularly for applications in AI, high-performance computing, and automotive sectors. The report highlights that regions such as Taiwan, South Korea, and the US will see major investments in these new fabs, further strengthening their positions as key players in the global semiconductor supply chain.

Sources:

For more details, visit the official SEMI World Fab Forecast page:

Semiconductor Digest:

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