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Global fab equipment spending for front-end facilities in 2023 is expected to decline 15 percent year-over-year from a record high in 2022 before rebounding 15 percent, Semi reports. Softening chip demand and elevated inventory of consumer and mobile devices will contribute to the 2023 low. “The 2023 decline in equipment investment is proving shallower and the 2024 rebound stronger than expected earlier this year,” says Semi CEO Ajit Manocha. “The trend suggests the semiconductor industry is turning the corner on the downturn and on a path back to robust growth fueled by healthy chip demand.”
Next year’s fab equipment spending recovery will be partly driven by the end of the semiconductor inventory correction in 2023 and strengthening demand for semiconductors in the high-performance computing (HPC) and memory segments. Covering 2022-2024, the Semi World Fab Forecast report shows the global semiconductor industry increasing capacity by 5 percent this year after an 8 percent rise in 2022. Capacity growth is expected to continue in 2024, climbing 6 percent.