Fab equipment spending expected to reach record levels

Global fab equipment spending for front-end facilities is expected to increase 20 percent year-over-year to an all-time high of 109 billion dollars in 2022, according to Semi’s quarterly World Fab Forecast report. This will mark a third consecutive year of growth and fab investment is expected to remain strong in 2023. “The global semiconductor equipment industry remains on track to cross the 100-billion-dollar threshold for the first time,” says Ajit Manocha, president and CEO of Semi. “This historic milestone puts an exclamation point on the current run of unprecedented industry growth.”

The report shows the global semiconductor industry increasing capacity by 8 percent this year after a 7 percent rise in 2021. Capacity growth is expected to continue in 2023, rising 6 percent. The fab equipment industry last saw a YoY growth rate of 8 percent in 2010, when it topped 16 million wafers per month (200-mm equivalents) – nearly half of the 29 million wafers per month (200-mm equivalents) projected for 2023.