Semiconductor Production Capacity Expected to Surpass 30 Million Wafers per Month This Year... Record High

SEMI Report
Growth Expected Driven by Demand for AI and HPC

There is a forecast that global semiconductor production capacity will reach an all-time high this year.

The Semiconductor Equipment and Materials International (SEMI) announced in a report on the 3rd that the global semiconductor production capacity, converted to 200mm wafers, was 29.6 million wafers per month last year, a 5.5% increase from the previous year, and it is estimated to grow by another 6.4% this year, surpassing 30 million wafers per month.

Last year, semiconductor market demand declined and inventory adjustments led to reduced investment in production facilities, limiting capacity expansion. However, this year, driven by increased demand for advanced logic semiconductors, generative artificial intelligence (AI), and high-performance computing (HPC), a strong growth trend is expected.

Ajit Manocha, CEO of SEMI, stated, "Market demand is increasing globally again, and investments in fabs (semiconductor manufacturing plants) in key regions are surging due to government support policies. With growing attention to the strategic importance of semiconductor production facilities related to national and economic security, this trend is expected to continue."

China's semiconductor production capacity increased by 12% last year to 7.6 million wafers per month, and it is expected to grow by 13% to 8.6 million wafers per month this year, leading the global expansion in semiconductor production capacity with the largest market share. Chinese semiconductor manufacturers are expected to start operating 18 new fabs this year.

Taiwan, holding the second-largest market share, saw its production capacity increase by 5.6% last year to 5.4 million wafers per month, and it is projected to grow by 4.2% to 5.7 million wafers per month this year. Five new fabs are expected to begin operations in Taiwan this year.

Next, South Korea is expected to increase its production capacity from 4.9 million wafers per month last year to 5.1 million wafers per month this year, with one new fab scheduled to start operations. Japan is forecasted by SEMI to rank fourth, increasing from 4.6 million wafers last year to 4.7 million wafers this year.

The United States is expected to record a 6% increase in production capacity to 3.1 million wafers per month, with six new fabs starting operations. Europe and the Middle East are anticipated to begin operations at four new fabs this year, increasing production capacity by 3.6% to 2.7 million wafers per month. Southeast Asia's production capacity is predicted to be 1.7 million wafers per month this year.

By sector, foundries are expected to expand production capacity from 9.3 million wafers per month last year to 10.2 million wafers per month this year. Memory, which experienced weak demand in PCs, smartphones, and other consumer electronics, is expected by SEMI to produce 4 million wafers per month for DRAM, a 5% increase from last year, and 3.7 million wafers per month for NAND, a 2% growth.

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