SEMI Releases Global Fab Outlook Report
$57.8 billion in 2020, up 3% from the previous year
South Korea's growth continues thanks to investments from Samsung and SK.

Global fab equipment investment this year is expected to show a gradual recovery from the decline in 2019 and reach an all-time high in 2021.

According to the World Fab Forecast report released by SEMI on March 10, fab equipment investment in the first half of 2020 is expected to decline by approximately 18% compared to the second half of last year, but a full-fledged recovery will begin in the second half, and semiconductor fab equipment investment in 2020 is expected to record USD 57.8 billion (USD 56.2 billion in 2019), up approximately 3% year-on-year.
The global fab equipment investment forecast for 2020, announced by SEMI in December, was revised downward due to a decline in fab equipment investment in China caused by the recent global impact of COVID-19.

However, despite COVID-19, China's equipment investment is expected to exceed $12 billion, growing by about 5% year-on-year, and reach $15 billion in 2021, up about 22%. Investments by Samsung Electronics, SK Hynix, SMIC, and YMTC are cited as the main growth drivers.

Taiwan's fab equipment investment in 2020 is expected to reach a record high of approximately $14 billion, driven by investments from TSMC and Micron. This will make Taiwan the largest investment region among major semiconductor production regions.

However, in 2021, it is expected to remain in third place among major investment regions, with investment falling by approximately 5% to $13 billion.

South Korea is expected to surpass $13 billion, a 31% increase over 2019, becoming the second-largest region for fab equipment investment, driven by investments from Samsung and SK Hynix. In 2021, South Korea's fab equipment spending is projected to increase 26% to $17 billion, making it the largest investment region.

Fab equipment investment in Southeast Asia, centered around Singapore, is expected to reach US$2.2 billion in 2020, up approximately 33% year-on-year, and grow by 26% in 2021.

Fab equipment investments in Europe and the Middle East are expected to surge more than 50% this year to $3.7 billion, and then match those of Intel, STMicroelectronics, and Infineon in 2021.

Japan's fab equipment investment is expected to grow 2% in 2020 and approximately 4% in 2021, led by companies such as Kioxia, Western Digital, Sony, and Micron.

Fab equipment investment in North America is expected to continue its slump in 2020, reaching $6.2 billion, down 24% year-on-year, with another 4% decline expected in 2021.

Meanwhile, this report was compiled based on an analysis of over 1,300 fabs worldwide, including investment amounts, production volumes, and technical information.