Since the three major European manufacturers have adopted the mode of fab wafer fab, the proportion of capital expenditure in the global semiconductor industry has been decreasing year by year. It is expected to account for only 4% of global expenditure in 2018, and 80% of global capital expenditure in 2005. %. Although capital expenditures of European companies may occasionally surge (for example, ST and AMS spending surged in 2017), IC Insights believes that companies headquartered in Europe will account for only 3% of global semiconductor capital expenditure in 2022.
It is worth noting that some Japanese semiconductor companies have also transformed themselves into fabs (such as Renesas, Sony, etc.) Due to fierce competition, the number and strength of Japanese semiconductor manufacturers have been declining, and vertical integration has been lost. Japanese companies Greatly reduced their investment in new fabs and equipment. In fact, it is expected that Japanese companies will account for only 6% of total capital expenditures in the semiconductor industry in 2018, a sharp drop from the 22% share in 2005, and The 51% share of the year declines faster.
IC Insights stated that in addition to SMIC, Changjiang Storage, Hefei Rui, Fujian Jinhua, and Shanghai Huali will spend a lot of money to purchase equipment and expand new fabs in 2018 and 2019. As manufacturers' spending increases, IC Insights believes that the share of capital expenditure in the Asia-Pacific/other semiconductor industry will remain above 60% for at least the next few years.