SEMI Global IC Industry to Invest Over $500 Billion in New Fabs by 2024

The global semiconductor industry is expected to invest more than $500 billion in 84 volume chip manufacturing facilities beginning construction from 2021 to 2023, with segments such as automotive and high-performance computing fueling the increases spending, according to SEMI’s latest quarterly report. Global Fab Forecast report.

Projected global fab growth includes a record 33 new semiconductor manufacturing facilities beginning construction this year and another 28 in 2023.

“The latest SEMI World Fab Forecast update reflects the growing strategic importance of semiconductors to countries and a wide range of industries globally,” said Ajit Manocha, President and CEO of SEMI. “The report highlights the significant impact of government incentives on expanding production capacity and strengthening supply chains. With the industry’s optimistic long-term outlook, increased investment in semiconductor manufacturing is key to laying the foundation for secular growth driven by a diverse range of emerging applications.

Start of construction of new semiconductor facilities by region

The SEMI Global Fab Forecast reports data from the seven regions of SEMI:

• In the Americas, the US Chip and Science Act propelled the region to lead the world in new capital spending, with government investment creating new chip manufacturing facilities and supporting vendor ecosystems. From 2021 to next year, the Americas is expected to begin construction of 18 new facilities.

• China is expected to outnumber all other regions in new chip manufacturing facilities, with 20 supporting mature technologies expected.

• Driven by the European Chips Act, investment in Europe/Middle East in new semiconductor facilities is expected to reach a historic level for the region, with 17 new factories beginning construction between 2021 and 2023.

• Taiwan is expected to begin construction of 14 new facilities, while Japan and Southeast Asia are each expected to begin construction of six new facilities during the forecast period. South Korea is expected to begin construction of three major facilities.