Expanding Semiconductor Territory... Global Facility Investment Hits Record High

IC Insights Forecasts Record High of $152 Billion This Year
Foundries Lead Capital Investment, Accounting for One-Third of Total

(Source=IC Insights)

[Asia Economy Reporter Lee Hye-young] It is forecasted that the global semiconductor companies' capital expenditures will exceed $150 billion this year, setting a new record high. Major foundry (semiconductor contract manufacturing) companies such as Samsung Electronics and TSMC have led the expansion of capital investment by injecting large-scale funds.

According to semiconductor market research firm IC Insights on the 15th, the total global semiconductor capital expenditure is expected to reach $152 billion (approximately 179.74 trillion KRW) this year. This represents a 34% increase compared to last year ($113.1 billion), setting a new all-time high within just one year. In terms of investment growth rate, it is the second highest following 41% in 2017.

By major sector, foundry investment accounted for $53 billion (approximately 62.816 trillion KRW), representing 35% of total capital expenditure. Foundry capital investment increased by 42% compared to last year ($37.3 billion). Foundry investment also grew by 42% compared to the previous year as of 2020 and has consistently accounted for the largest share of capital expenditures since 2014.

IC Insights analyzed, "Except for the surge in DRAM and flash memory capital expenditures in 2017 and 2018, the global semiconductor capital expenditure trend has been led by foundries," adding, "As demand for semiconductors applying advanced process technologies increases, foundry investment spending is also rising."

By company, TSMC's foundry capital expenditure this year was estimated at $30.2 billion (approximately 35.793 trillion KRW), accounting for 57% of the global foundry industry investment, more than half. Samsung Electronics has also actively invested to secure market leadership, recently confirming the establishment of a second foundry plant in Taylor, USA, with an investment scale of $17 billion (approximately 20 trillion KRW). Additionally, SK Hynix, which is strengthening its foundry sector through acquisitions such as Key Foundry, has executed semiconductor capital expenditures amounting to 10 trillion KRW through the third quarter of this year.

On the other hand, SMIC, a Chinese foundry company, saw its investment amount remain at $4.3 billion (approximately 5.091 trillion KRW), down 25% year-on-year due to strengthened investment restrictions triggered by US-China conflicts.

Meanwhile, IC Insights explained that capital expenditure growth rates in all sectors other than foundry recorded double digits. Facilities related to flash memory products increased by 13% year-on-year to $27.9 billion (approximately 34.336 trillion KRW), and investments in DRAM and SRAM grew by 34% to $24 billion (approximately 28.416 trillion KRW). Investment in MPU (Microprocessor Unit) and MCU (Microcontroller Unit) production facilities reached $23.5 billion (approximately 27.824 trillion KRW), a 42% increase compared to last year.

This content was produced with the assistance of AI translation services.