Expect 4% growth (YoY) for 2016 and 11% for 2017
SAN JOSE, Calif. ─ September 6, 2016 ─ Today, SEMI published its August update of the World Fab Forecast report, which shows increased equipment spending, reaching 4.1 percent year-over-year in 2016 and 10.6 percent in 2017. See Figure 1. The report has served the industry for 24 years, observing and analyzing spending, capacity, and technology changes for all front-end facilities worldwide, from high-volume to R&D fabs.
Figure 1: Fab Equipment Spending by Region
The largest growth drivers for the industry are mobile devices (including devices using SSDs), automotive, and soon anticipated to be IoT, with these applications frequently requiring 3D NAND and Logic 10nm/7nm.
The SEMI World Fab Forecast report indicates that the two industry segments leading to the biggest increase in 2H16 are Foundry (29 percent) and Memory (21 percent). Growth in Memory is driven by a significant increase in 3D NAND spending in 2016. Comparing 2016 to 2017, Foundry growth remains steady, with a 14 percent increase in 2016 and 13 percent in 2017.
Comparing spending by region in 2016, SE Asia shows the largest growth, with 157 percent in 2016, driven mainly by 3D NAND. China, in second place for overall spending, shows 64 percent growth for 2016 primarily due to 3D NAND by non-Chinese companies, closely followed by Foundry companies. Although the largest spenders in China currently are overseas device companies, China-based chipmakers are starting to pick up investment activity.
By contrast, the largest growth rate in 2017 is in Europe/Mideast with about 60 percent, which is mainly due to ramping of 10nm facilities. Korea is in second place for total spending, mainly driven by Samsung’s investment in DRAM and Flash. Japan in third place driven by Flash Alliance (3D NAND).
The World Fab Forecast report provides more detailed information by company and fab for construction spending, equipment spending and capacities by region and product type. Since the last publication in May 2016, the SEMI research team has made over 330 changes to 300 facilities/lines. This includes 27 new records and 18 records closed. For information about semiconductor manufacturing and details about capex for construction projects, fab equipping, technology levels, and products, order the SEMI World Fab Forecast Report (Excel format). It tracks spending and capacities for over 1,100 facilities including over 82 future facilities, across industry segments from Analog, Power, Logic, MPU, Memory, and Foundry to MEMS and LEDs facilities ─.using a bottoms-up methodology. Learn more about the SEMI fab databases at: www.semi.org/MarketInfo/FabDatabase and www.youtube.com/user/SEMImktstats
SEMI® connects more than 2,000 member companies and more than a quarter-million professionals worldwide to advance the science and business of electronics manufacturing. SEMI members are responsible for the innovations in materials, design, equipment, software, and services that enable smarter, faster, more powerful, and more affordable electronic products. Since 1970, SEMI has built connections that have helped its members grow, create new markets, and address common industry challenges together. SEMI maintains offices in Bangalore, Beijing, Berlin, Brussels, Grenoble, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C. For more information about SEMI, visit www.semi.org and follow SEMI on LinkedIn and Twitter.
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