SEMI, the global industry association representing electronics manufacturing and the supply chain, forecasts a rapid increase in global fab equipment spending next year with 24% growth to about $67.7 billion.
This is 10% higher than what was previously anticipated with all product segments seeing solid growth rates. Memory fabs will lead worldwide semiconductor segments with $30 billion in equipment spending, with leading-edge logic and foundry expected to rank second with $29 billion in investments, SEMI said.
The 3D NAND memory sub-segment specifically will see spending growth of 30% in investments this year before spending growth of 17% in 2021. Dynamic random access memory (DRAM) fab investments will grow 50% in spending next year after falling 11% in 2020. Fab spending on logic and foundry will rise 16% in spending after dropping about 11% in spending this year.
Image sensor equipment investments will rise 60% over 2020 and add a 35% rise in investment in 2021. Analog and mixed signal investments will grow by 40% in 2020 and an additional 13% in 2021. Power-related devices are expected to grow 16% in 2020 and jump an additional 67% in 2021.
SEMI predicts that investments in global fab equipment will increase in the second half of 2020, the overall year will mark the second consecutive yearly drop in fab equipment spending — 4% this year after an 8% drop in 2019.
The COVID-19 pandemic has impacted global fab equipment spending with a quarter-on-quarter decline of 15% in the first quarter of 2020. SEMI said that it appeared some companies built up stock as a countermeasure to the virus in March as it spread, and shelter-in-place and social distancing became the norm. IT and electronic products demand rose during this time for items such as notebooks, game consoles and healthcare.