According to SEMI, global spending on front-end fab equipment is expected to decline by 22% YoY to USD 76 billion in 2023, down from a record high of USD 98 billion in 2022. However, SEMI predicts that spending will rebound in 2024, rising by 21% YoY to USD 92 billion, led by the end of the semiconductor inventory correction in 2023 and increased demand for semiconductors in high-performance computing and automotive segments.
Taiwan is projected to maintain its position as the global leader in fab equipment spending in 2024, with investments of USD 24.9 billion, followed by Korea at USD 21 billion. The Americas and Europe & Mideast are also expected to see record investments, while Japan and Southeast Asia are expected to increase their spending in 2024.
The foundry segment is expected to lead the semiconductor industry expansion, with more suppliers offering foundry services to increase global capacity. Memory is forecast to place second in global spending in 2023, and analog and power are expected to see a steady expansion due to stable growth in the automotive market.
The SEMI World Fab Forecast report covers 1,470 facilities and lines globally, including 142 volume facilities and lines that are expected to start production in 2023 or later.