Investment in Semiconductors on Steady Rise
As digital conversion accelerates after the spread of the new coronavirus, investments in new semiconductor production facilities are expected to continue to grow.
Semiconductor Equipment and Materials International (SEMI) announced on Nov. 5 that investment in 300mm wafer fabs in 2020 will increase by 13 percent on year, surpassing the current high set in 2018. The investment amount is expected to swell 20 percent in 2023, reaching US$70 billion, the highest ever figure.
Many industry experts predict that investment in fabs will continue to grow due to growing demand for IT devices and technology amid the spread of the COVID-19 virus. An increase in data volume in line with technological advances in 5G mobile communication, the Internet of Things (IoT), autonomous driving, artificial intelligence (AI) and machine learning is fueling investment in chips.
SEMI foresaw that at least 34 new 300mm fabs will be built from 2020 to 2024. About US$1.8 million will be invested in monthly fab production during this period, and monthly wafer production will exceed 7 million sheets in 2024.
Of the planned fabs, 11 will be built in Taiwan and eight in China. They will account for half of all new fabs to be built in the world. By 2024, the world will have a total of 161 300mm fabs. China is rapidly ramping up its share in 300mm fab production. Its share is expected to rise from 8 percent in 2015 to 20 percent in 2024.
However, non-Chinese companies will lead growth in China. China's state-run semiconductor companies are also speeding up their investment in production. Chinese chipmakers’ share is expected to rise from about 43 percent in 2020 to 50 percent in 2022 and 60 percent in 2024.
Japan's market share is expected to decline from 19 percent in 2015 to 12 percent in 2024. North America’s share is also expected to fall from 13 percent in 2015 to 10 percent in 2024.
Korea is expected to spend about US$15 billion to about US$19 billion between 2020 and 2024. Taiwan is expected to invest about US$14 billion to about US$17 billion and China about US$11 billion to about US$13 billion.
This is due to increased investment in memories. Investment in 300mm memory fabs is expected to grow five-plus percent every year from 2020 to 2023, and about 10 percent in 2024.