THE GLOBAL SEMICONDUCTOR MARKET OUTLOOK
Semiconductor worldwide capital spending is projected to increase by 3 % in 2017, to $ 69.9 billion. This is down from 5 % growth in 2016. The semiconductor manufacturing market’ s outlook is expected to improve in the years ahead, due mainly to the higher demand for memory chips used in smartphones. Other areas of growth are LEDs, logic chips, MEMS and analog devices.
THE GROWTH OF REGIONAL CAPITAL SPENDING
From a worldwide view, the Europe / Middle East region and South Korea are expected to see the largest growth rates this year, with 48 % growth and 45 % growth respectively, year-over-year. Japan will increase spending by 28 %, followed by the Americas with a 2 % year-over-year growth.
In 2017, China is building or expanding 48 semiconductor fabrication plants( fabs), with equipment spending of $ 6 billion. Looking ahead to 2018, it is predicted that more than 50 fabs will be built or expanded, with spending of about $ 10 billion.
FAB EQUIPMENT SPENDING IN 2017 FAB EQUIPMENT SPENDING IN 2018
SE ASIA 2.4
TAIWAN 10.7
KOREA 12.1
US $ BILLION
AMERICAS 5.3
CHINA 6.7
EUROPE & MIDDLE EAST 3.4
JAPAN 5.6
SE ASIA 2.6
TAIWAN 9.5
KOREA 12.8
JAPAN 5.2
US $ BILLION
AMERICAS 5.7
EUROPE & MIDDLE EAST 4
CHINA 10
DATA: WORLD FAB FORECAST REPORT, FEB 2017, SEMI
SEMICONDUCTOR PRODUCTION GROWTH IN CHINA
With more than 20 new fab projects under way or announced in China since 2016, spending on fab equipment will increase to $ 10 billion or more, annually, by 2018. By 2019, China’ s semiconductor capital spending is expected to surpass that of South Korea and Taiwan. Not only will China emerge as the largest spending market for fab equipment, the spending level will likely approach alltime-record levels for annual spending in a single region.
The driver behind this investment growth is changing. Prior to 2017, investments by overseas multinational companies have led spending on semiconductor fab equipment. These companies, will continue to invest in China, although
Chinese companies will increasingly invest more, and drive much of the growth in capital spending through 2020.
Chinese domestic foundries will increase their spending going forward. Chinabased companies will dominate semiconductor spending in 2019-2022. These grass-roots projects will accelerate wafer fab equipment spending in China to record high annual spending levels.
US $ MILLION $ 16,000
$ 14,000 $ 12,000 $ 10,000 $ 8,000 $ 6,000 $ 4,000 $ 2,000 $ 0
CHINA FAB INVESTMENT BY PARTIES
Within four to five years, China will become the largest market for wafer fab equipment, thus representing an important market opportunity for every company providing equipment, materials, services, critical systems and more.
Servomex’ s Asia Pacific semiconductor team, led by Marketing Manager Leong Kee Keat, supports fabs in China through its business centre in Shanghai.
CHINA CHAMPIONS
FOREIGN CHAMPIONS
2015 2016 2017 2018 2019 2020
SOURCE: SEMI WORLD FAB FORECAST
Contact our Asia Pacific Business Centre: + 86( 0) 21 6489 7570 or asia _ sales @ servomex. com
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