Application Forecasts and Market Shares

Fab equipment spending to reach record levels in 2022

15 June 2022

For the third consecutive year, global fab equipment spending will reach a record level, hitting $109 billion in 2022, or an increase of 20% year-over-year, according to new data from SEMI.

This growth follows a 42% surge in 2021 in global fab equipment spending and SEMI forecasts that 2023 fab equipment investment will remain strong.

"The global semiconductor equipment industry remains on track to cross the $100 billion threshold for the first time as shown in our latest update of the World Fab Forecast,” said Ajit Manocha, president and CEO of SEMI. “This historic milestone puts an exclamation point on the current run of unprecedented industry growth.”

Taiwan leads the way

Unsurprisingly with two of the largest foundries in the world, Taiwan is expected to lead fab equipment spending in 2022 with investments increasing 52% to $34 billion. Korea, with one of the largest foundry supplies in Samsung Electronics and other electronics giants such as LG, will be second overall in equipment spending at $25.5 billion, a 7% rise.

China will be third in spending with $17 billion, a drop of 14% from last year followed by Europe/Mideast, which will log a record high spending of $9.3 billion in 2022.

In the Americas, fab equipment spending will reach $9.3 billion in 2023, a 13% year-over-year rise following a 19% increase in 2022. This will put the Americas in fourth place in overall spending during both years.

Capacity rising

Capacity is forecast to increase in 2022 up 8% after a 7% rise in 2021, SEMI said. Over 85% of equipment spending in 2022 will stem from capacity increases at 158 fabs and production lines.

Capacity is expected to continue in 2023, rising 6%. Fab equipment last saw a growth rate of 8% in 2010 when it topped 16 million wafers per month. The foundry sector will account for the bulk of equipment spending in 2022 and 2023, followed by memory at 33% in 2022 and 34% in 2023.

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