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Home > News > Industry News > Fab spending on a roll

Fab spending on a roll

  • Author:Ella Cai
  • Release on:2017-06-07
$49 billion will be spent on semiconductor manufacturing equipment this year, says SEMI.

Spending on new fab construction is projected to reach over $8 billion, the second largest year on record.

In 2018, fab equipment spending will pass $54 billion, and new fab construction spending is forecast at an all-time high of $10 billion.

An increase in overall fab spending (construction and equipment together) of 54% y-o-y in China is expected.

China total spending is expected to risee from $3.5 billion in 2016 to $5.4 billion in 2017, and then to $8.6 billion in 2018, another 60% y-o-y increase.
The spending will be shared between established players Hua Li Microelectronics and SMIC and mnewcomers Yangtze Memory Technology, Fujian Jin Hua Semiconductor, Tsinghua Unigroup, Tacoma Semiconductor, and Hefei Chang Xin Memory.

Korea is top spender at $14.6 billion in 2017 and $15.1 billion in 2018.

In 2017, Taiwan is projected to be the second largest spending region on equipment, but China will take over second place in 2018 as it equips the many new fabs being built in 2016 and 2017.

America is in fourth place, projected to spend $5.2 billion in 2017 and $5.5 billion in 2018.

Japan will come in fifth, spending $5.1 billion in 2017 and $5.3 billion in 2018.

The Europe/Mideast region is in sixth place with relatively modest investments of $3.8 billion in 2017, this represents remarkable growth for the region, 71% more than in 2016; and the region will bump spending another 20% in 2018 (to $4.6 billion).

The growth cycle could continue well beyond 2018.  Record fab construction spending of $10 billion for 2018 means new fabs will need to be equipped at least a year down the road.