"Semiconductor Equipment Investment to Recover Next Year... Sharp Increase Expected in Memory Sector"

Next Year, the Foundry Sector Expected to Receive the Most Investment

Although the global semiconductor fab equipment investment scale is expected to decrease this year, it is projected to show growth next year, potentially recovering to last year's investment level. The foundry (semiconductor) sector is expected to receive the largest investment next year, with the memory semiconductor sector also anticipated to see a sharp increase in investment due to industry recovery.

On the 12th, the Semiconductor Equipment and Materials International (SEMI) announced that this year's global fab equipment investment could record $84 billion, a 15% decrease from last year.

The investment scale for next year is expected to increase by 15% from this year, reaching $97 billion. It is anticipated that after the semiconductor inventory adjustment this year is completed, demand in high-performance computing (HPC) and memory sectors will increase, allowing the investment scale to recover to last year's level.

Ajit Manocha, CEO, stated, "The decline in semiconductor fab investment this year is less than initially forecasted at the beginning of the year," adding, "The recovery next year is expected to be stronger." He also explained, "The semiconductor industry will move past the downturn and return to stable growth, supported by increased semiconductor demand."

By sector, the foundry (semiconductor contract manufacturing) is expected to lead the growth of the fab equipment market next year. Investment in fab equipment for the foundry sector next year is projected to reach $51.5 billion, a 5% increase from this year's forecast of $49 billion.

The memory sector is expected to see a 46% sharp decline in investment this year but is projected to recover next year with a 65% increase to $27 billion. DRAM investment is expected to increase by 40% to $15 billion, while NAND flash investment is anticipated to rise by 113% to $12.1 billion.

By country, Taiwan is expected to maintain its global lead in fab equipment investment next year. Taiwan is projected to invest approximately $23 billion next year, a 4% increase from this year.

South Korea is expected to record the second-largest investment scale. Supported by the recovery in the memory sector, SEMI forecasts that next year's investment will surge by 41% to $22 billion compared to this year.

China, which is experiencing export controls, is expected to see a decrease in fab equipment investment next year, recording $20 billion. SEMI anticipates that "despite various constraints, Chinese foundries and integrated device manufacturers (IDMs) will continue to invest in advanced process nodes."

The North American region is expected to reach a record high investment of $14 billion next year, a 23% increase from this year. Europe and the Middle East are also projected to show a record investment, increasing by 41.5% to $8 billion next year. Fab equipment investment in Japan and Southeast Asia is expected to increase to $7 billion and $3 billion, respectively, next year.

Meanwhile, global semiconductor equipment sales in the second quarter recorded $25.8 billion. This sales figure represents a 2% decrease from the same period last year and a 4% decrease from the previous quarter. CEO Manocha commented, "During the second quarter, the industry's attitude toward semiconductor equipment investment was cautious and showed regional disparities."

By region, semiconductor equipment sales in China increased significantly. China recorded $6.56 billion in the second quarter, up 15% from the same period last year and 29% from the previous quarter. Taiwan recorded $6.68 billion, down 18% from the same period last year and 15% from the previous quarter. South Korea recorded $5.78 billion, a 1% increase from the previous quarter but a 2% decrease from the same period last year.

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