Global semiconductor capacity projected to reach record high 30 in 2024, SEMI reports
The 2024 growth will be driven by capacity increases in edge logic and foundry applications including generative AI and high-performance computing.
January 2, 2024 | By MRO Magazine
Photo: SEMI. Global semiconductor capacity is expected to increase 6.4 per cent in 2024 to top the 30 million wafers per month (wpm) mark for the first time after rising 5.5 per cent to 29.6 wpm in 2023, SEMI announced in its latest quarterly World Fab Forecast report.
The 2024 growth will be driven by capacity increases in edge logic and foundry applications including generative AI and high-performance computing (HPC), and the recovery in end-demand for chips. The capacity expansion slowed in 2023 due to softening semiconductor market demand and the resulting inventory correction.
“Resurgent market demand and increased government incentives worldwide are powering an upsurge in fab investments in key chipmaking regions and the projected 6.4% rise in global capacity for 2024,” said Ajit Manocha, SEMI President and CEO. “The heightened global attention on the strategic importance of semiconductor manufacturing to national and economic security is a key catalyst of these trends.”
Covering 2022 to 2024, the World Fab Forecast report shows that the global semiconductor industry plans to begin operation of 82 new volume fabs, including 11 projects in 2023 and 42 projects in 2024 spanning wafer sizes ranging from 300mm to 100mm.
Boosted by government funding and other incentives, China is expected to increase its share of global semiconductor production. Chinese chip manufacturers are forecast to start operations of 18 projects in 2024, with 12 per cent YoY capacity growth to 7.6 million wpm in 2023 and 13 per cent YoY capacity growth to 8.6 million wpm in 2024.
Taiwan is projected to remain the second-largest region in semiconductor capacity, increasing capacity 5.6 per cent to 5.4 million wpm in 2023 and posting 4.2 per cent growth to 5.7 million wpm in 2024.
The World Fab Forecast shows the Americas increasing chip capacity by 6 per cent YoY to 3.1 million wpm with six new fabs in 2024. Europe & Mideast is projected to up capacity 3.6 per cent to 2.7 million wpm in 2024 as it launches operations of four new fabs. Southeast Asia is poised to increase capacity 4 per cent to 1.7 million wpm in 2024 with the start of four new fab projects.
