Amidst the unprecedented semiconductor investment trend, South Korea's semiconductor fab equipment sales in 2022 are projected to reach $25.5 billion, a 7% increase from the previous year.

According to the 'World Fab Forecast' report by SEMI, an industry association representing the global electronics industry supply chain, semiconductor fab equipment sales (front-end equipment sales) are expected to reach an all-time high of $109 billion, a 20% increase from the previous year.

According to this year's forecast, semiconductor fab equipment sales will continue to grow for the third consecutive year, with a particularly strong 20% growth rate expected this year, despite a sharp 42% increase in 2021.

“According to SEMI’s Fab Outlook report, semiconductor fab equipment sales are projected to surpass $100 billion this year, the highest ever,” said Ajit Manocha, CEO of SEMI. “This record-breaking figure underscores the unprecedented growth the semiconductor industry is experiencing.”

Looking at fab equipment investment by region, Taiwan is expected to be the leading country in fab equipment investment in 2022.It is expected to reach $34 billion, a 52% increase over the previous year.

Korea is expected to follow with $25.5 billion, a 7% increase, and China is expected to see a 14% decrease with $17 billion. While smaller in scale, Europe and the Middle East are expected to see record investment this year, reaching $9.3 billion, a 176% increase over the previous year.

Additionally, Taiwan, Korea, and Southeast Asia are expected to record record levels of investment in 2023.

Fab equipment sales in North America are expected to grow 19% in 2022 and 13% in 2023, reaching $9.3 billion.

According to SEMI's Fab Outlook report, the global semiconductor industry's production capacity is expected to increase by 8% this year, following a 7% increase in 2021.

This growth is expected to continue, with a 6% increase in 2023. In 2010, when growth reached a high of 8%, monthly wafer production (equivalent to 200mm) reached 16 million wafers. However, this figure is now only half of the 29 million wafers projected for 2023.

More than 85% of fab equipment revenue in 2022 will be generated by 158 new fabs and production lines, with this share expected to drop slightly to 83% in 2023 as 129 new fabs and production lines are added.

The foundry sector is expected to account for the majority of forecasted sales in 2022 and 2023, with a share of approximately 53% of total fab equipment sales, while the memory sector is expected to account for 33% in 2022 and 34% in 2023.