Global fab equipment investment is expected to rebound strongly in 2024 after the semiconductor downturn this year.

According to the '2023 Global Fab Equipment Investment Data' released by SEMI on the 12th, global fab equipment investment in 2023 is expected to reach $84 billion, a 15% decrease from the all-time high of $99.5 billion in 2022.


This is because slowing chip demand and rising inventories of consumer and mobile devices have driven a decline in semiconductor fab equipment investment this year.

On the other hand, it is projected to reach $97 billion in 2024, a 15% rebound from this year.

This is because the semiconductor inventory adjustment is expected to end in 2023 and semiconductor demand in the high-performance computing (HPC) and memory sectors is expected to strengthen.

“The decline in semiconductor fab investments this year is lower than we initially forecast, and the recovery next year appears poised to be even stronger,” said Ajit Manocha, CEO of SEMI. This shows that the semiconductor industry will overcome the recession and return to stable growth driven by semiconductor demand,” he said.

The foundry segment is expected to grow 1% this year to $49 billion in investments, and is expected to lead the overall semiconductor fab equipment market growth in 2024, growing 5% to $51.5 billion as investments in advanced nodes continue.

Fab equipment investments in the memory sector are expected to show a strong recovery, with investments declining 46% in 2023 and then increasing 65% in 2024 to $27 billion.

In particular, DRAM fab equipment investment is projected to decline 19% year-on-year to $11 billion in 2023, but grow 40% to $15 billion in 2024.

NAND fab equipment spending is expected to decline 67% to $6 billion in 2023, but increase 113% to $12.1 billion in 2024.

Fab equipment investment in the MPU sector is expected to plateau in 2023 and increase 16% to $9 billion in 2024.

By country, Taiwan is expected to maintain its global lead by investing approximately $23 billion in fab equipment in 2024, a 4% increase from this year.

South Korea is expected to become the second-largest investor in semiconductor fab equipment in 2024, with investments reaching $22 billion, a 41% increase from this year, driven by a recovering memory sector.

China's global semiconductor fab equipment spending is expected to decline to $20 billion in 2024, ranking it third, as export controls are expected to limit Chinese investment.

On the other hand, despite various constraints, Chinese foundries and IDMs are expected to continue investing in advanced process nodes.

North America will see a 23% increase in investment in 2024 compared to this year.It is expected to reach an all-time high of $4 billion.

Europe and the Middle East are also expected to see record investments next year, with semiconductor fab equipment spending expected to increase 41.5% to $8 billion.

Fab equipment spending in Japan and Southeast Asia is expected to grow to $7 billion and $3 billion, respectively, in 2024.

The SEMI Worldwide Fab Outlook report cited in this announcement tracks 1,477 facilities worldwide, including 169 production facilities and lines expected to begin operations after 2023.