The Increasing Semiconductor Equipment Market will Help in Adding More Capacity; Feels Experts

Published  April 25, 2022   0
S Staff
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Semiconductor-Manufacturing

Manufacturers would augment worldwide  200mm fab capacity by 1.2 million wafers, or 21 percent, between 2020 and 2024 to hit a record high of 6.9 million wafers per month

The coronavirus pandemic, which created a ruckus throughout the world, has also escalated the demand for the next-generation cutting-edge electronic items and technology. Most importantly, it has kept the capital market buzzing with international sales of semiconductor manufacturing equipment to 44 percent. It recorded a revenue of $102.6 billion from $71.2 billion in 2020, according to an exclusive survey published by global industry association SEMI. SEMI works in association with various companies to boost manufacturing supply chains and towards growth of electronics product design.

It is no surprise that sales of global semiconductor equipment soared because electronics manufacturers are now already involved in the rat-race to escalate the international manufacturing capacity in order to meet the augmenting demand from electronic components and semiconductors. But, since the added manufacturing capacity takes numerous years to go online, the vibes of investments are often not taken into account or rather it cannot be felt, which ultimately accounts to parts shortages.

Ajit Manocha, SEMI president and CEO told media, "The 44 percent increase in manufacturing equipment spending in 2021 highlights the global semiconductor industry's aggressive push to add capacity. This drive to expand production capabilities extends beyond the current supply imbalance, as the industry continues to ramp up to address a wide range of emerging high-tech applications that will enable a smarter digital world with countless social benefits."

The association also opined that for the two consecutive years, China turned to be the biggest market for semiconductor equipment with sales escalating 58 percent to $29.6 billion, growth in four consecutive years. The second largest market in this domain in Korea that accounted for 55 percent sales to $25.0 billion and this after a heftiest growth in 2020. On the other hand, Taiwan, followed by China and Korea witnessed a rapid sales growth of 45 percent to $24.9 billion. Annual semiconductor equipment spending increased 23 percent in Europe and 17 percent in North America. Whereas in other parts of the globe, sales frisked to 79 percent. 

Most importantly, the wafer processing sales increased to 44 percent in 2021, while sales of other front-end segments soared to 22 percent. Assembly and packaging equipment increased 87 percent across all regions in 2021, while total test equipment sales rose 30 percent, claims SEMI. The association’s exclusive 200mm Fab Outlook Report added that manufacturers would augment worldwide  200mm fab capacity by 1.2 million wafers, or 21 percent, between 2020 and 2024 to hit a record high of 6.9 million wafers per month