Global semiconductor fab equipment investment in 2022 is projected to reach an all-time high, supported by strong demand and South Korea's rise to the top globally.

SEMI recently announced in its latest fab outlook report (SEMI World Fab Forecast) that global fab equipment investment will reach a record high of $98 billion in 2022, a 10% increase year-over-year.

This means that global fab equipment investment is expected to maintain growth for three consecutive years.

In particular, it was predicted that our country would rise to the top globally, surpassing Taiwan and China.

Global fab equipment spending in 2021 is expected to increase by 39% compared to 2020, after a 17% increase in 2020 compared to 2019.

The last three consecutive years of growth from 2020 to 2022 were about 30 years ago, in the mid-1990s, and from 2016 to 2018.

“The semiconductor equipment industry has experienced unprecedented growth, with equipment sales increasing in six of the past seven years, driven by advancements in emerging technologies such as AI, autonomous driving, and quantum computing,” said Ajit Manocha, CEO of SEMI. “The strong demand for remote work, healthcare, education, and other applications triggered by the COVID-19 pandemic is driving increasing demand for semiconductor production capacity.”
/> The foundry sector is expected to grow 13% year-over-year in 2022, accounting for 46% of total semiconductor fab equipment investment.

The memory sector is projected to account for 37% of semiconductor fab equipment investment in 2022. Within the memory sector, investment in DRAM is expected to decline, while investment in NAND is expected to increase.

Investment in MPUs is expected to surge 47% in 2022, while investment in power semiconductors is also expected to see a strong 33% increase.

In 2022, Korea is expected to be the largest equipment spender, followed by Taiwan and China. The combined investment in semiconductor equipment by these three countries is projected to account for 73% of total fab equipment spending in 2022.

Taiwan is expected to see high investment in 2021 and growth of at least 14% in 2022. Like Taiwan, South Korea is also expected to see significant investment in 2021 and growth of 14% in 2022. China's investment in 2022 is expected to decline by 20% year-on-year.

Europe and the Middle East are expected to see a whopping 145% year-on-year increase in investment in 2022, while Japan is also expected to see a 29% increase compared to 2021.

SEMI's Fab Outlook report, used in this presentation, tracks approximately 1,422 semiconductor manufacturing facilities and provides specific data.