As demand for semiconductors has surged since COVID-19, the price of 8-inch (200mm) foundries is gradually increasing. Accordingly, related industries are operating their production lines at full capacity to increase production and are also showing active moves in facility investment.




According to the latest 200mm Fab Outlook report released by SEMI, the international association of semiconductor equipment and materials suppliers, the monthly wafer production of 8-inch semiconductor foundries worldwide is expected to expand to 6.9 million wafers by the end of 2024, a 21% increase from the beginning of 2020.

This is an increase of approximately 1.2 million units, and the rapid increase in 8-inch foundry production since last year due to the increase in global semiconductor demand has continued this year. The industry explained that in order to overcome the current global semiconductor shortage, 5.3 billion dollars was invested in 8-inch foundry equipment last year, and this year, the investment volume is expected to remain high at 4.9 billion dollars.

As the 8-inch foundry booms, SK Hynix, DB HiTek, and others are smiling. DB HiTek's performance is soaring as supply and demand issues in the 8-inch process, which was considered a somewhat old-fashioned process, are becoming prolonged. DB HiTek announced that its annual sales last year exceeded 1 trillion won for the first time and that its production lines are operating at full capacity.

SK Hynix System IC, a subsidiary of SK Hynix, saw its sales approaching 700 billion won last year, and its net profit nearly doubled year-on-year. The industry evaluated that while sales decreased slightly year-on-year due to the suspension of some lines as production lines were relocated, the profitability of the 8-inch foundry improved significantly, leading to a large increase in net profit.

SEMI forecasted that “the foundry sector will account for more than 50% of total production this year,” followed by “analog at 19%, and discrete and power semiconductors at 12%.” Regionally, China is expected to account for 21% in 2022, followed by Japan at 16%, and Taiwan, Europe, and the Middle East at 15% each.

Investment in 8-inch semiconductor equipment is expected to exceed $3 billion in 2023. The report explained that foundries will account for 54% of total investment, discrete and power semiconductors 20%, and analog semiconductors 19%.

On the other hand, the industry predicted that increasing 8-inch production would not be easy. The 8-inch process is considered old-fashioned, and while moving to the 12-inch process, equipment manufacturers are withdrawing from the 8-inch market, making it difficult to immediately respond to demand. Last year, Chinese semiconductor companies swept up used 8-inch equipment, clearly demonstrating the shortage of related equipment.

Accordingly, SK Hynix is expected to pursue the acquisition of Key Foundry, an 8-inch semiconductor contract manufacturer, and increase its monthly 8-inch production capacity by 80,000 to 90,000 units. Related companies are also actively investing in facilities and individualizing their expansion strategies.

SEMI CEO Ajit Manocha estimates that about 25 new 8-inch production lines will be added over the next five years as demand for 5G, autonomous driving, IoT, analog and power semiconductors continues to grow.