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Semiconductor fab equipment investment continues for the fourth consecutive year.
Published2018.03.15 10:52According to the World Fab Outlook report released by SEMI on February 28, 2018, semiconductor fab equipment investment is expected to grow by 5% in 2019, marking the fourth consecutive year of notable growth.
SEMI expects Samsung to continue to lead fab equipment spending in 2018 and 2019, albeit at a slightly lower level than in 2017. China's fab equipment investment is projected to increase by 57% in 2018 and 60% in 2019. This rapid investment growth is expected to see China surpass Korea as the leading fab investment region by 2019.
After reaching its peak fab equipment sales in 2017, South Korea's fab equipment investment is projected to drop 9% to $18 billion in 2018 and 14% to approximately $16 billion in 2019. Taiwan's equipment investment is projected to drop 10% to $10 billion in 2018 and then rise 15% to over $11 billion in 2019.
We anticipate strong investment in Chinese fab equipment in 2018-2019, as the 26 fabs that began construction in 2017 are expected to be equipped this year or next.
While non-Chinese companies currently account for the largest portion of fab equipment investment in China, the share of investment by Chinese companies in China is expected to increase from 33% in 2017 to 45% in 2019.
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