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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