Semiconductor industry to see 4th consecutive growth year in equipment spending: SEMI

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The global semiconductor industry is all set to witness the third consecutive year of record equipment spending with a projected year over year growth of 14 percent in 2018 and nine percent in 2019, reveals the latest update of the World Fab Forecast report published by SEMI. Not just that, this mark would extend the streak to a historic fourth consecutive growth year, shows the same report.

The semiconductor industry has seen similar trend of four consecutive years of equipment spending growth only once earlier in the mid-1990s in its 71-year-long history.  Korea and China are leading the growth in equipment spending at present.

While Samsung is expected to reduce equipment investments in 2018, it still is dominating the global spending with a whopping 70 percent of all investment in Korea. Alongside, SK Hynix has been spotted to increase its equipment expenses in Korea.

China’s equipment spending is expected to increase by 65 percent in 2018 and 57 percent in 2019, as per the latest report. Interestingly, companies with headquarters in other regions like Intel, SK Hynix, TSMC, Samsung and GlobalFoundries have contributed to major share of equipment investment in China, as much as 58 percent in 2018 and 56 percent in 2019.

Also, domestic, Chinese-owned companies supported by government initiatives are setting up several new fabs that are about to start equipping this year. These companies are expected to double their equipment expenses in both 2018 and 2019, respectively.

Japan too is not lagging behind in terms of equipment expenditure. It, in fact, is increasing equipment spending by 60 percent in 2018 with major expense contribution from companies like Toshiba, Sony, Renesas and Micron.

With Intel, GlobalFoundries, Infenion and STMicroelectronics as major contributors, the Europe and Middle East are about to boost their investments by 12 percent in 2018. South East Asia will also see a hike in equipment spending by over 30 percent in 2018.

However, this growth is proportionately smaller than the other regions. Micron, Infenion and GlobalFoundries have been listed to be the top contributors in equioment expenditure in South East Asia with companies like OSRAM and ams AG also increasing investments.

 

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