SEMI stated that the decline in global fab equipment spending in 2023 is mainly due to weakening chip demand and increased consumer and mobile device inventories. The recovery in fab equipment spending next year is partly due to the end of semiconductor inventory adjustments in 2023 and increased demand for semiconductors in high-performance computing (HPC) and automotive fields.
Bu Rixin, general manager of Chuangdao Investment Consulting, said that the main reason for the decline in global wafer fab equipment in 2023 is that investment expenditures increased more than expected in the past few years, and now it is gradually returning to the normal scale of the industry. Before there is a new growth point in downstream demand, there is no core driving force for large-scale expansion of the production capacity of upstream wafer fabs.
"The semiconductor industry is a very mature industry. There are large cycles and small cycles. The large cycle is the industrial upgrading driven by technological development. The small cycle is the short-term fluctuation of supply and demand. The impact of the small cycle on the industry will not last too long. What really promotes the development of the industry is the growth of downstream demand driven by technological progress. The future will drive semiconductors A major factor in the further development of the industry will be the digital transformation of the industry, such as the large-scale artificial intelligence model that the industry has paid close attention to recently. The demand for high-performance computing power at the bottom of these industries is the underlying support for building the future digital world and is also the core driving force for the development of the semiconductor industry," Bu Rixin told a reporter from China Electronics News.
SEMI data shows that Taiwan, China’s fab equipment expenditure will reach US$24.9 billion in 2024, continuing to rank first in the world. South Korea is second, with approximately US$21 billion. Mainland China’s revenue is about US$16 billion, which is equivalent to 2023, ranking third in the world. The Americas are expected to remain the fourth largest spending region, with investment reaching a record $11 billion in 2024, a year-on-year increase of 23.9%. Europe and the Middle East are also expected to see record investment next year, rising 36% to $8.2 billion. Wafer fab equipment spending in Japan and Southeast Asia is expected to increase to US$7 billion and US$3 billion respectively in 2024.
ANNA