SEMI: global fab equipment spending slows in 2023 and is expected to recover in 2024

CTOnews.com, March 22 (Xinhua)-- according to the International Semiconductor Industry Association (SEMI) forecast data, global fab equipment expenditure is expected to fall 22% year on year in 2023, from a record high of $98 billion (CTOnews.com note: about 673.26 billion yuan) in 2022 to $76 billion (about 522.12 billion yuan), and will grow by 21% year on year to $92 billion (about 632.04 billion yuan) in 2024.

The report points out that the decline in 2023 will be due to weaker chip demand and increased consumption and mobile device inventories. The recovery in fab equipment spending next year will be driven in part by the end of semiconductor inventory adjustments in 2023 and increased demand for semiconductors in high performance computing (HPC) and automobiles.

Global semiconductor industry capacity is expected to grow 4.8 per cent in 2023 after 7.2 per cent growth in 2022, according to SEMI. Capacity will continue to grow 5.6 per cent in 2024.

CTOnews.com learned from the SEMI report that as more and more suppliers provide contract manufacturing services, global production capacity increases. Foundry is expected to lead semiconductor expansion with an investment of US $43.4 billion (about RMB 298.158 billion) in 2023, down 12.1% from a year earlier to US $48.8 billion (about RMB 335.256 billion) in 2024. Memory is expected to rank second in global spending in 2023, although year-on-year decline of 44.4% to $17.1 billion (about 117.477 billion yuan), Memory investment will increase to $28.2 billion (about 193.734 billion yuan) in 2024.

In addition, unlike other market segments, the report says analog and power will expand steadily due to steady growth in the auto market, with spending expected to rise 1.3% to $9.7 billion (about 66.639 billion yuan) in 2023. Investment in this sector is expected to remain stable next year.