SEMI, the global industry association for semiconductor manufacturing, has released its latest forecast for investment in semiconductor manufacturing equipment on March 21, 2023. The report projects a 22% decline in investment for 2023 compared to 2022, followed by a 21% increase in 2024.
The data reveals that global investment in semiconductor manufacturing equipment will peak at a record high of $98 billion in 2022. However, this figure is expected to drop by 22% to $76 billion in 2023. This drop is attributed to lower demand for semiconductors and an increase in stockpiles for consumer and mobile devices.
Nevertheless, the inventory of semiconductor devices is projected to stabilize by 2024, with an increase in demand in high-performance computing and automotive fields. Consequently, SEMI predicts that investment in semiconductor manufacturing equipment will rebound to $92 billion in 2024, up 21% from 2023.
Looking at regional investment for 2024, Taiwan is expected to lead with $24.9 billion, followed by South Korea with $21 billion, and China with $16 billion. However, SEMI notes that China’s investment level in 2024 is expected to remain the same as in 2023 due to US export restrictions.
In terms of investment by industry, the semiconductor contract manufacturing (foundry) sector is anticipated to experience a 12.1% decrease in investment to $43.4 billion in 2023, followed by a 12.4% increase in 2024.