The semiconductor money-making window appears: chip manufacturers begin to bet heavily!

On July 7, after the global semiconductor industry experienced a downturn in 2023, the first half of 2024 finally saw the dawn of recovery.

As market demand picks up, major wafer fabs have begun to increase capital expenditures, expand production capacity, and prepare for a new growth peak.

According to a report by JPMorgan Securities, wafer foundry inventory destocking is nearing completion. The continued increase in AI demand and the gradual recovery of non-AI demand indicate that the wafer foundry industry is beginning to recover.

Especially in mainland China, the capacity utilization rate of wafer foundries has recovered rapidly, and inventory adjustments of local IC design companies have gradually returned to normal.

As industry leaders, major manufacturers such as TSMC, Samsung, SK Hynix, and Micron have begun to increase capital expenditures and actively expand production capacity.

TSMC plans to increase its capital expenditure to US$32 billion to US$36 billion in 2025 to cope with strong demand for 2nm process capacity. Samsung and SK Hynix are also raising funds in South Korea in preparation for significant expansion of production in 2025.

Micron plans to significantly increase capital expenditures to approximately $12 billion in fiscal 2025 to support new technologies and facility upgrades.

SEMI data shows that global wafer fab equipment spending is expected to increase 21% year-on-year to US$92 billion in 2024, and Taiwan, South Korea, and mainland China will continue to lead in equipment spending.