Supply Chain Management

Semiconductor Equipment Spending Expected to Grow 20-30%

05 March 2014

Semiconductor suppliers will increase fab equipment spending 20 to 30 percent in 2014, according to a new report by trade association SEMI.

The SEMI World Fab Forecast identified more than 190 fab projects in 2014 involving spending on construction and/or equipment and 250 projects in 2015.

Double-digit fab equipment spending growth will occur in almost all industry segments, according to SEMI. The segment that is expected to have the largest increase is microprocessors, followed by memory. Analog, logic and MEMS will share third place with about 30 percent growth each. Foundry segment equipment spending is expected to grow by 15 percent.

The report shows an increase in DRAM related projects resulting in a 30 percent increase in equipment spending by DRAM manufacturers in 2014. Overall DRAM installed capacity is expected to remain flat in 2014, following a contraction in 2013, according to SEMI.

Equipment spending in the LED segment will decline 9 percent in 2014 following a 21 percent decline in 2013. Construction spending for all opto/LED facilities will increase by over 60 percent in 2014. These investments will increase installed capacity for LED by 12 percent in 2014 and about 14 percent in 2015.

SEMI monitors the installed capacity of more 1,100 facilities. Across the industry, installed capacity (without discretes) grew by only 2 percent in 2013 and will rise to 3 percent growth in 2014 and in the 3-5 percent range in 2015, the association said.

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