“Global semiconductor production capacity will reach a record high of over 30 million units per month in 2024”

According to the latest report from SEMI, an industry association representing the global electronics industry supply chain, global semiconductor production capacity (based on 200mm wafer conversion) in 2023 is expected to grow 5.5% from 2022 to 29.6 million units. It is expected to grow another 6.4% in 2024 to exceed 30 million units.

In 2023, capacity expansion was limited due to a decline in demand in the semiconductor market and inventory adjustments, which led to a decline in investment in production facilities.

On the other hand, it is expected to maintain high growth in 2024 due to increasing demand for advanced logic semiconductors, generative AI, and high-performance computing (HPC).

“Global market demand is picking up again, and government support policies for semiconductors are driving a surge in fab investment in key regions,” said Ajit Manocha, CEO of SEMI. This trend is likely to continue, especially as global attention grows on the strategic importance of semiconductor manufacturing facilities to national and economic security,” he said.

Looking at it by region, China is expected to have a high share of global semiconductor production capacity thanks to government support.

Chinese chipmakers are expected to bring 18 fabs online in 2024. China’s semiconductor production capacity is expected to increase 13% year-on-year to 8.6 million units per month in 2024, up from 7.6 million units in 2023.

Taiwan, with the second largest share, is expected to see its production capacity increase by 5.6% to 5.4 million units per month in 2023 and by 4.2% to 5.7 million units per month in 2024.

Taiwan is expected to have five fabs coming online in 2024.

South Korea is expected to be the third largest country, with monthly capacity expected to increase from 4.9 million units in 2023 to 5.1 million units in 2024, with one new fab scheduled to come online in 2024. Japan is expected to rank fourth, with monthly capacity expected to increase from 4.6 million units in 2023 to 4.7 million units in 2024.

With six new fabs coming online in the U.S. in 2024, U.S. chip production capacity is expected to increase 6% from 2023 to 3.1 million chips per month.

Europe and the Middle East is expected to see a 3.6% increase in capacity to 2.7 million units per month in 2024, with four new fabs coming online. In Southeast Asia, four new fabs are expected to come online in 2024, increasing production capacity by 4% to 1.7 million units per month.

The foundry division is expected to expand its production capacity to 9.3 million units per month in 2023 and a record 10.2 million units per month in 2024, solidifying its position as the largest customer in the semiconductor equipment market.

The memory sector's production capacity expansion slowed in 2023 due to weak demand for consumer electronics such as PCs and smartphones.

The DRAM sector is expected to grow 2% to 3.8 million units per month in 2023, and 5% to 4 million units per month in 2024. NAND is expected to grow 2% to 3.7 million units per month in 2024, similar to 2022, and 3.6 million units per month in 2023.

The proliferation of electric vehicles is leading to high growth in production capacity in the discrete and analog semiconductor sectors.

Discrete production capacity is expected to increase by 10% to 4.1 million units per month in 2023 and by 7% to 4.4 million units per month in 2024, while analog semiconductor production capacity is expected to increase by 11% to 2.1 million units per month in 2023 and by more than 10% to 2.4 million units per month in 2024.

SEMI's World Fab Forecast, cited in the announcement, tracks 1,500 facilities, including 177 fabs and lines expected to come online in 2023.