In its latest quarterly World Fab Forecast report, SEMI announced that global fab front-end equipment spending in 2022 is expected to increase by about 9% year over year to $99 billion. The forecast is down from the $109 billion SEMI forecast in June this year, but it is still a record high. The report also expects global fab capacity to continue to grow this year and into 2023.
Fab Equipment Spending
By region, Taiwan is expected to lead fab equipment spending in 2022, with investment increasing by 47% year-on-year to $30 billion. It was followed by South Korea at $22.2 billion, down 5.5%. Mainland China was $22 billion, down 11.7% from last year's peak.
Spending in Europe/Middle East is expected to hit an all-time high of $6.6 billion this year, up 141% year-over-year, although spending remains less than in other regions. Strong demand for advanced technologies in high-performance computing (HPC) is driving spending growth in the region. Investments in the Americas and Southeast Asia are also expected to hit record highs in 2023.
This year, global semiconductor manufacturers are actively expanding their production capacity. A total of 167 fabs and production lines have expanded their production capacity. Equipment expenditures for capacity expansion account for more than 84% of the overall equipment expenditures. It is expected that there will still be 129 fabs and production lines next year. production capacity, accounting for 79% of the overall equipment expenditure.