China Will Expand Power & Compound Fab Capacity More Than Any Other Region: SEMI

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  • Power and compound devices are used to control electrical energy for devices across an array of industries
  • By 2024, 38 new power & compound facilities and lines will begin operation
Image Source – EurekAlert

Global fab equipment spending for power and compound devices is expected to rebound in the second half of 2020 to meet resurgent end-product demand. The same as per a report by SEMI, will jump 59 per cent to a segment record US$6.9 billion in 2021.

“Since the widespread enactment of stay-at-home orders to curb the spread of COVID-19, demand for servers, laptops and other electronics at the heart of online communications has surged,” read the report by SEMI.

The 2020 rally will help blunt a drop in annual spending, now projected at eight per cent, as fabs ride the COVID-19 recovery wave. SEMI forecast that by 2024, 38 new facilities and lines will begin operation, fueling installed capacity growth of a cumulative 20 percent to 9.7 million wafers per month.

Silicon wafer area shipments rose 2.7 percent

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Worldwide silicon wafer area shipments, as per another report by SEMI, rose 2.7 per cent to 2,920 million square inches in the first quarter of 2020. Compared with fourth-quarter 2019 shipments of 2,844 million square inches, these dropped 4.3 per cent year-over-year.

“Global silicon wafer shipments rebounded slightly in the first quarter of 2020 after declining for one year,” said Neil Weaver, chairman SEMI SMG and vice president, Product Development and Applications Engineering at Shin Etsu Handotai America.

He continued, “However, with the disruptions caused by the coronavirus, market uncertainty will prevail in the upcoming quarters.”

In breakdowns by region, China will expand power and compound fab capacity by 50 per cent and 87 per cent, respectively, from 2019-2024, more than any other region. Over the same period, Europe/Mideast and Taiwan will lead the way in adding power fab capacity, while the Americas and Europe/Mideast will be among those regions adding compound fab capacity.

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