MEMS and Sensors

200 mm fab capacity to increase 17% by 2024

26 May 2021

Chip makers are on track to boost 200 mm fab capacity by 950,000 wafers — about 17% — from 2020 through 2024, according to new data from SEMI.

This increase would allow 200 mm manufacturing to reach 6.6 million wafers per month, a record high for the process technology. Additionally, 200 mm fab equipment spending is expected to reach nearly $4 billion in 2021 after passing the $3 billion mark in 2020.

Equipment investments are forecast to remain above $3 billion in 2022 with the foundry sector accounting for more than half of spending followed by the discrete/power market at 21%, the analog at 15% and MEMS and sensors at 7%. From 2019 through 2020, 200 mm equipment spending ranged from $2 billion to $3 billion.

SEMI said this spending increase reflects the push in the semiconductor industry to overcome the ongoing chip shortage that is crippling many parts of the chip industry. The market for automotive semiconductors has especially been hit hard by the shortage as a result of the COVID-19 pandemic.

"The 200 mm Fab Outlook Report shows that, during the same period, wafer manufacturers will add 22 new 200 mm fabs to help meet growing demand for 5G, automotive and internet of things (IoT) devices that rely on analog, power management and display driver integrated circuits, MOSFETs, microcontroller units and sensors," said Ajit Manocha, SEMI president and CEO.

Over the next decade, the market for semiconductors is expected to rise by 5% due to increased use of the chips in the automotive sector, consumer electronics, home appliances, smart home devices and the IoT.

Foundries will account for more than 50% of fab capacity globally this year, followed by analog at 17% and discrete/power at 10%. Regionally, China will lead the world in 200 mm capacity with a 17% share in 2021, followed by Japan at 16%.

The full research can be found in SEMI’s 200 mm Fab Outlook to 2024 report.

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