Semiconductor equipment investments for front end fabs are expected to reach nearly $100 billion in 2022 to meet demand for electronics after topping a projected $90 billion this year, SEMI highlighted today in its World Fab Forecast report.
The new fab equipment spending records will mark a three consecutive years of growth that began in 2020. The semiconductor industry last saw more than two consecutive years of growth in the mid-1990s.
The foundry sector will account for the bulk of fab equipment investments in 2022, with more than $44 billion in spending, followed by the memory sector at over $38 billion. DRAM and NAND show large increases in 2022 with jumps in spending to $17 billion and $21 billion, respectively. Micro/MPU investments will reach approximately $9 billion, discrete/power $3 billion, analog $2 billion, and other devices approximately $2 billion next year.
Korea will lead in fab equipment spending at $30 billion, followed by Taiwan at $26 billion, and China at nearly $17 billion. Japan will take the fourth spot with almost $9 billion in fab equipment spending. Europe / Mideast will be in fifth place at $8 billion. Fab equipment spending in Americas and Southeast Asia is projected to reach more than $6 billion and $2 billion, respectively.