Global fab equipment spending poised to log 3 straight years of record highs, says SEMI
Jessie Shen, DIGITIMES, Taipei
Thursday 18 March 2021
Fueled by surging pandemic-inspired demand for electronics devices, the global semiconductor industry is on track to register a rare three consecutive years of record highs in fab equipment spending with a 16% increase in 2020 followed by forecast gains of 15.5% this year and 12% in 2022, according to SEMI.
Fabs worldwide will add about US$10 billion worth of equipment in each of the three years as spending climbs to top US$80 billion at the end of the forecast period, SEMI indicated. Explosive demand for electronics that are the backbone of communications, computing, healthcare and online services - sectors that mounted robust responses to the COVID-19 outbreak as the world rallied to curb the coronavirus spread - account for much of the spending.
Fab equipment spending has historically been cyclical, with one or two years of growth typically followed by a downtrend of roughly equal length. The semiconductor industry last saw three straight years of fab equipment investment growth in a run that started in 2016. It was nearly 20 years before that streak that the industry recorded an expansion of at least three years. In the mid-1990s, the chip industry boasted a four-year period of growth.
The bulk of fab investments in 2021 and 2022 will be seen in the foundry and the memory sectors, SEMI noted. Driven by leading-edge investment, foundry spending is expected to grow 23% to US$32 billion in 2021 and flatten in 2022. Overall memory spending will increase in the single digits to reach US$28 billion in 2021 while DRAM will surpass NAND flash, and then surge by 26% in 2022 on the strength of both DRAM and 3D NAND investment.
The power and MPU segment will also see strong spending growth over the forecast period, SEMI said. Power is forecast to show strong investment growth of 46% and 26%, respectively, in 2021 and 2022 driven by strong demand for power semiconductor devices. MPU will add to the momentum with 40% growth in 2022 as microprocessor investments increase.
P.S.
I look forward to the many WAG forecast uplifts during the coming years.
The 50 year trend continues its acceleration. It's NOT different this time.
ASML |
