The global semiconductor industry plans to invest more than $500 billion in 84 high-volume chip fabrication facilities, which will begin construction between 2021 and 2023, according to SEMI. Growth in the number of global fabs is expected to include a record 33 new semiconductor fabrication facilities that will begin construction this year and 28 more in 2023.

SEMI President and CEO Ajit Manocha said in a press release that the latest SEMI World Fab Forecast update reflects the growing strategic importance of semiconductors to countries and a wide range of industries around the world. It added that the report underscores the significant impact of government incentives on expanding production capacity and strengthening supply chains.

China is expected to outpace all other regions in new chip manufacturing facilities, with 20 mature technologies planned. Investment in new semiconductor facilities in Europe and the Middle East will reach an all-time high for the region, with 17 new fabs starting construction between 2021 and 2023, driven by the European Chip Act. Taiwan, Japan and Southeast Asia also plan to start construction of new facilities.