SEMI: Global fab equipment spending slows in 2023, expected to recover in 2024

Data from the International Semiconductor Industry Association (SEMI) forecast report shows that global fab equipment spending is expected to drop 22% year-on-year in 2023, from a record high of US$98 billion in 2022 (IT Home Note: currently about 673.26 billion yuan) dropped to US$76 billion (approximately RMB 522.12 billion), and will increase by 21% year-on-year in 2024, returning to US$92 billion (approximately RMB 632.04 billion).

The report noted that the decline in 2023 will stem from weaker chip demand and rising consumer and mobile device inventories. Next year's recovery in fab equipment spending will be driven in part by the end of semiconductor inventory adjustments in 2023 and stronger demand for semiconductors in high-performance computing (HPC) and automotive.

SEMI said that after the global semiconductor industry production capacity increased by 7.2% in 2022, production capacity is expected to increase by 4.8% in 2023, and production capacity will continue to increase by 5.6% in 2024.

IT House learned from the SEMI report that as more and more suppliers provide foundry services and global production capacity increases, it is expected that foundry will lead the semiconductor expansion with an investment of US$43.4 billion (approximately 298.158 billion yuan) in 2023, year-on-year. dropped by 12.1%, and will increase by 12.4% year-on-year to US$48.8 billion (approximately RMB 335.256 billion) in 2024. Memory is expected to rank second in global spending in 2023. Although it fell 44.4% year-on-year to US$17.1 billion (approximately 117.477 billion yuan), Memory investment will increase to US$28.2 billion (approximately 193.734 billion yuan) in 2024.

In addition, unlike other market segments, the report stated that due to the steady growth of the automotive market, analog and power will expand steadily, with expenditures expected to increase by 1.3% in 2023 to reach US$9.7 billion (approximately RMB 66.639 billion). Investment in the sector is expected to remain flat next year.