Memory Chips Will See the Largest Spending Increase in 2020: SEMI

- Advertisement -

The USA-based semiconductor association, in its latest report, has noted that the CoronaVirus is driving the rise in global fab equipment spending. China accounts for most of the new projects

Soaring pandemic-inspired demand for chips that power everything from communications and IT infrastructures to personal computing, gaming and healthcare electronics will drive an eight per cent increase in global fab equipment spending in 2020 and a 13 per cent increase in 2021, SEMI announced in its World Fab Forecast report.

- Advertisement -

“Rising demand for semiconductors for datacenter infrastructures and server storage along with the buildup of safety stock as U.S.-China trade tensions intensify are also contributing to this year’s growth,” read the report.

Recovering from a nine per cent decline

The bullish trend for overall fab equipment investments, as per SEMI, comes as the semiconductor industry recovers from a nine per cent decline in fab spending in 2019 and navigates a roller-coaster 2020 with actual and projected spending drops in the first and third quarters mixed with second- and fourth-quarter increases.

“Of all chip sectors, memory will see the largest spending increase in 2020, growing US$3.7 billion, or 16 per cent year-over-year (YoY), to US$26.4 billion, and tack on an 18 per cent increase to reach US$31.2 billion in 2021. 3D NAND spending will log the largest percentage surge this year, expanding 39 per cent, and register modest growth of seven per cent in 2021. DRAM is expected to see four per cent growth after a slowdown in the second half of 2020 before jumping 39 per cent percent next year,” read the report.

Equipment spending forecasts for other semiconductor sectors

Foundry, the next largest sector in equipment spending for 2020, is forecast to rise US$2.5 billion, or 12 per cent YoY, to US$23.2 billion and edge up two per cent to US$23.5 billion in 2021.

MPU equipment spending will decline US$1.2 billion, or 18 per cent, in 2020 and rise nine per cent to US$6 billion in 2021. Analog spending, as per the report, will grow a robust 48 per cent in 2020 and rise six per cent in 2021, an expansion chiefly driven by equipment investments for mixed-signal/power fabs.

Image sensors equipment spending is expected to rise four per cent to US$3 billion in 2020 and jump 11 per cent to US$3.4 billion in 2021. The SEMI World Fab Forecast report covers more than 1,300 fabs and lines and includes capacity and technology by fab and construction investments.

China accounts for the most (nine) of the new projects; followed by Taiwan at five; Southeast Asia and the Americas at two each; and Japan, Korea, and Europe/Mideast at one each. The report also tracks 18 new construction projects planned to begin next year – 10 in China, four in the Americas, three in Taiwan, and one in Europe/Mideast.

- Advertisement -

Most Popular Articles

Infineon, Stellantis Partner To Advance Next-Gen Vehicle Power

0
With a dedicated Joint Power Lab and secured supply agreements, the partnership is set to drive transformative advancements in EV performance, cost-effectiveness, and the...

Audi Launches New EV Brand In China, Drops 4-Ring Logo

0
On Thursday, Audi introduced a new electric vehicle brand in China, branding the cars solely with the name 'AUDI' instead of its traditional four-ring...
IIT Bhubaneswar

IIT Bhubaneswar Partners MOSart Labs To Boost Engineering Skills In Chip Industry

0
The aim is to help students with essential skills in areas such as very-large-scale integration (VLSI), semiconductor technology, analog and digital design, validation, and...
Jaguar concept EV

JLR Highlights Its Biggest Reinvention With The Concept Car Jaguar Design Vision

0
The four-door GT is anticipated to be Jaguar's most powerful model to date. Its targeted range is approximately 430 miles (700 kilometers), and its...

ISE Labs Expands With New OSAT Facility In Mexico

0
Turbocharging its growth in North America’s tech hub, ISE Labs is set to build an OSAT semiconductor facility in Jalisco, Mexico, eyeing to create...

“Adoption Of IoT-Enabled SMT Machines Is Still In Early Phases” – Pradeep Tandon, Director...

0
While electronics are becoming smarter through the Internet of Things, is electronics manufacturing following suit? Pradeep Tandon, Director for India, Middle East, and SAARC...
Dr Yashodhan P. Gokhale, Vice President for Battery Technology, JSW Energy

Charge Forward: High-Voltage Batteries And MSMEs Can Fuel India’s EV Revolution

0
A nuanced explanation of low- and high-voltage EV batteries by Dr Gokhale, Vice President for Battery Technology at JSW Energy, illuminates their advancements and...
Sanjay Gupta, CDO & Global Head of Engineering, L&T Semiconductor Technologies

Can MSMEs Contribute And Profit From The Semicon Boom?

0
Semiconductor manufacturing often requires significant investment, typically feasible only for governments or large corporations. But are there opportunities for MSMEs as well? We spoke...
N.P. Ramesh, COO and Co-Founder, Orb Energy

“We Ensured Customers’ Monthly EMI Would Be Equal To Or Less Than Their Electricity...

0
In a conversation with Nitisha from EFY, N.P. Ramesh of Orb Energy outlines the early financing challenges customers faced. He explains how Orb Energy’s...

“Government Policy Should Equitably Address All Electric Vehicles: Extend Subsidies To Retrofits Or Remove...

0
Aryaman Raghuvanshi from EFY engages with Pramod Narendra, Head of Brand Management and Retail Network at Starya Mobility, to explore the overlooked potential of...

Wireless Light-Based Communication With Velmenni’s Technology

0
Velmenni is at the forefront of wireless communication innovation with its pioneering light-based technologies, Li-Fi and LC Link. Founded by Deepak Solanki in October 2014...

Harnessing AI Technology For Efficient Pest Management

0
AI-Genix, an agri-tech startup, is transforming pest management for farmers through advanced AI-enabled systems that precisely target harmful pests. In an industry where pesticides and...

One Charger To Charge All Your Devices

0
Now, there is no need to carry different chargers for different products. This Bhubaneswar startup has launched a universal 65W charger using GaN technology...

Karnataka Government Initiative Promises ₹5M To Tech Startups

0
Boosting innovation and entrepreneurship across the state’s vibrant ecosystem, Karnataka launched Elevate 2024 and KAN, offering grants up to ₹5 million for startups. On Tuesday,...

CastNX Tech Startup Secures ₹232M For Power Electronics Growth

0
Eyeing to boost R&D and produce 100,000 variable frequency drives by 2026, Indian power electronics startup CastNX has secured ₹232.2 million from Plutus Investments. CastNX...

Industry's Buzz

Learn From Leaders

Startups