Strengthening Recovery: Fab Equipment Spending — 24% Increase in 2014, Possible Record in 2015

SAN JOSE, Calif. — June 3, 2014 — After two years of decline, fab equipment spending (new, used, for Front End facilities in 2014 is expected to increase 24 percent in 2014 (US$35.7 billion) and about 11 percent (US$39.5 billion).  In terms of equipment spending, 2015 may reach or even surpass historic record year 2011 (about US$39.8 billion). For the May 2014 SEMI World Fab Forecast publication, SEMI tracked more than 200 major projects involving equipment spending for new equipment or upgrades, as well as projects to build new facilities or refurbish existing facilities.   In the last three months, 265 updates were made to the database. See Figure 1.

In 2014, the three largest regions for fab equipment spending will be Taiwan with over US$10.3 billion, the Americas with over US$6.8 billion, and Korea with over US$6.3 billion.  In 2015, these same regions will lead in spending: Taiwan will spend over US$11 billion, Korea over US$8 billion, and the Americas almost US$7 billion. Although in sixth in regional equipment spending this year, the Europe/Mideast region will show the strongest rate of growth, about 79 percent compared to the previous year.  The same region will continue to grow fast in 2015, with an increase of about 20 percent.

Worldwide installed capacity is very low for both 2014 and 2015 and the SEMI data does not suggest that this will change over the next four years. Because of the increased complexity of leading-edge nodes, such as more process steps and multiple patterning, fabs experience a decline in capacity as the same fab space produces less.  Worldwide, installed capacity grew by less than 2 percent in 2013 and is expected to grow just 2.5 percent in 2014 and 3 percent in 2015.

SEMI’s detailed data predict that Foundry capacity continues to grow at 8-10 percent yearly (a steady pace since 2012) and Flash is up 3 to 4 percent for 2014. Although DRAM equipment spending is expected to grow by 40 percent in 2014 as many fabs upgrade to a leading-edge process, installed capacity for DRAM is expected to stay flat or even drop 2 percent.  SEMI’s reports also cover capacity changes for other product segments:  MPU, Logic, Analog/Mixed signal, Power, Discretes, MEMS, and LED and Opto.

The SEMI World Fab Forecast uses a bottom-up approach methodology, providing high-level summaries and graphs, and in-depth analyses of capital expenditures, capacities, technology and products by fab. Additionally, the database provides forecasts for the next 18 months by quarter. These tools are invaluable for understanding how the semiconductor manufacturing will look in 2014 and 2015, and learning more about capex for construction projects, fab equipping, technology levels, and products.

The SEMI Worldwide Semiconductor Equipment Market Subscription (WWSEMS) data tracks only new equipment for fabs and test and assembly and packaging houses.  The SEMI World Fab Forecast and its related Fab Database reports track any equipment needed to ramp fabs, upgrade technology nodes, and expand or change wafer size, including new equipment, used equipment, or in-house equipment. Also check out the Opto/LED Fab Forecast. Learn more about the SEMI fab databases at: www.semi.org/MarketInfo/FabDatabase and www.youtube.com/user/SEMImktstats 

About SEMI

SEMI is the global industry association serving the nano- and microelectronics manufacturing supply chains.  Our 1,900 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 Bangalore, Beijing, Berlin, Brussels, Grenoble, Hsinchu, Moscow, San Jose, Seoul, Shanghai, Singapore, Tokyo, and Washington, D.C.  For more information, visit  www.semi.org.   



Contact

Deborah Geiger
SEMI

Phone: 408.943.7988
Email:  Email Contact




Review Article Be the first to review this article

EMA:

Featured Video
Editorial
Peggy AycinenaWhat Would Joe Do?
by Peggy Aycinena
Retail Therapy: Jump starting Black Friday
Peggy AycinenaIP Showcase
by Peggy Aycinena
REUSE 2016: Addressing the Four Freedoms
More Editorial  
Jobs
AE-APPS SUPPORT/TMM for EDA Careers at San Jose-SOCAL-AZ, CA
Manager, Field Applications Engineering for Real Intent at Sunnyvale, CA
ACCOUNT MANAGER MUNICH GERMANY EU for EDA Careers at MUNICH, Germany
Development Engineer-WEB SKILLS +++ for EDA Careers at North Valley, CA
FAE FIELD APPLICATIONS SAN DIEGO for EDA Careers at San Diego, CA
Upcoming Events
Zuken Innovation World 2017, April 24 - 26, 2017, Hilton Head Marriott Resort & Spa in Hilton Head Island, SC at Hilton Head Marriott Resort & Spa Hilton Head Island NC - Apr 24 - 26, 2017
CST Webinar Series



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering TechJobsCafe - Technical Jobs and Resumes GISCafe - Geographical Information Services  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy