Over 150 Fab Projects Lead to Strong 2010 and 2011
Robust Equipment Spending and More Installed Capacity Expected
SAN JOSE, Calif. – September 7, 2010 – The World Fab Forecast released at the end of August indicates a 133 percent increase in equipment spending for Front End fabs this year and about 18 percent growth in 2011. Worldwide installed fab capacity (without Discretes) is expected to grow by 7 percent in 2010 and another 8 percent in 2011. Fab construction spending will increase by 125 percent in 2010 and an additional 22 percent in 2011. The data reveals that for both 2010 and 2011, over 150 fab projects will contribute an estimated $83 billion in spending. The projects tracked include construction projects and equipment spending for high volume, smaller capacity, MEMS, and Discrete, including LED, fabs.
Robust Spending Continues
Most of the current investments in construction assure additional capacity for the future. The World Fab Forecast has identified a total of 54 construction projects underway in 2010 and the result is about $4.5 billion in construction spending. About half of these projects are for LED facilities (mostly in China). In 2011, fewer but larger fabs will carry higher construction costs, about $5.5 billion.
Spending on equipping fabs will increase by 133 percent in 2010 to an estimated $34 billion. This is a record growth rate, off of the historic low of 2009. Compared to 2008 spending, 2010 total equipment spending will be only 27 percent higher. Compared to 2007, 2010 spending will be 11 percent lower. The World Fab Forecast report predicts spending in 2011 to increase 18 percent, bringing total spending to $39B, finally surpassing 2007 spending levels.
SEMI’s World Fab Forecast also provides details of facilities beginning operations in 2010 and 2011. By the end of 2010, about 22 facilities will begin operations. Analyzed by sector, half of these are LED, six are Foundries, three are Analog and two are Logic. No new Memory fabs will begin operation in 2010. In 2011, another 28 facilities are expected to begin operations, including four Memory fabs.
More Capacity Expected
Worldwide installed fab capacity (without Discretes) is expected to grow by 7 percent by the end of 2010 to 14.4 million 200 mm equivalent wafers per month (wpm), and by another 8 percent in 2011 to 15.8 million wpm. The Memory sector accounts for the largest share of worldwide installed capacity, about 41 percent in both 2010 and 2011. Foundry capacity follows having grown their market share from 24 percent in 2009 to 26 percent in 2011.
SEMI’s World Fab Database reports continue to track individual fab projects very closely. Updates and more information on the reports can be found at www.semi.org/fabs.
The full article is available on the SEMI website: “Over 150 Fab Projects Lead to Strong 2010 and 2011” at http://www.semi.org/en/MarketInfo/EquipmentMarket/ctr_040085?id=sguna0910
The SEMI World Fab Forecastreport provides high-level summaries and graphs, in-depth analyses of capital expenditure, capacity, technology and products, down to the detail of each fab, and forecasts for the next 18 months by quarter. These tools are invaluable for understanding how 2010 and 2011 will look, and learning more about capex for construction projects, fab equipping, technology level, and products.
Please visit www.semi.org/fabsfor additional information on these reports or to see a detailed article.
SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries. SEMI member companies are the engine of the future, enabling smarter, faster and more economical products that improve our lives. Since 1970, SEMI has been committed to helping members grow more profitably, create new markets and meet common industry challenges. SEMI maintains offices in Austin, Bangalore, Beijing, Berlin, Brussels, Grenoble, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information, visit www.semi.org.
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