SEMI: Global fab equipment spending will hit a new high

Set micro-mesh news, the International Semiconductor Manufacturers Association in late 2017 update 'World Fab Forecast' report content, pointed out that in 2017 fab equipment investment-related expenses will be revised to a record high of 57 billion US dollars .

Cao Shi-lun, president of SEMI Taiwan, said: 'Due to strong demand for chips, high memory pricing, fierce market competition and other factors continue to drive up investment in fabs, many companies have hitherto unknown investment in new fabs and related equipment '

Figure 1: Expenditure on Global Fab Equipment Over the Years (Source: SEMI)

According to SEMI Global Fab Forecast, fab equipment spending totaled $ 57 billion in 2017, an increase of 41% from the previous year, and 2018 spending is expected to rise 11% to $ 63 billion.

While many companies such as Intel, Micron, Toshiba and Western Digital (WD) and GLOBALFOUNDRIES increase fab investment in 2017 and 2018, the overall The substantial increase in fab spending is mainly driven by the two companies, South Korea's Samsung and SK Hynix.

According to SEMI data, the overall surge in investment in South Korea in 2017 was mainly attributable to the significant growth of Samsung's spending, which is expected to grow by 128% from 8 billion U.S. dollars to 18 billion U.S. dollars. Hynix's fab spending also increased 70%, reaching 5.5 billion USdollars, setting the company's highest record ever.Most of Samsung and Hynix expenses spent in South Korea, but there are still some investments in mainland China and the United States, and thus bring the two areas of expenditure Growth in 2011. SEMI predicts that the investment of both companies will continue to be high in 2018.

Figure 2: Expenditure on Fab Equipment Worldwide (Source: SEMI)

Many Chinese fabs completed in 2017 are expected to enter the equipment installation phase by 2018. Unlike in the past, most fab investment in mainland China came from foreign manufacturers. In 2018, the wafer fab equipment of Chinese component manufacturers Expenditures will catch up with foreign vendors for the first time, reaching about 5.8 billion U.S. dollars, while foreign companies are expected to invest 6.7 billion U.S. dollars, including many new entrants such as Cheung Kong Storage, Fujian Jinhua, Huali and Hefei Changxin, all in China Large-scale investment in the mainland set up factories.

Expenditure on semiconductor fab equipment hit record highs in 2017 and 2018, reflecting the continued growth in demand for advanced components in the market, as well as spending on new plants reaching historic highs in mainland China in 2017 and 2018, respectively, topping the figure of 6 billion in 2017 and 2018 respectively U.S. dollar and 6.6 billion U.S. dollar respectively, which sets another record as no region has spent more than 6 billion U.S. dollars in annual plant construction in the past.