An impressive amount of new chip factories coming on line soon should help do away with the shortages that have wreaked havoc for auto production over the past two years. PHOTO courtesy Honda.
There’s a distinct break in the clouds for job shops serving the automotive sector which have been hurt by reduced vehicle builds due to the shortage of computer chips.
Fueled by chip shortages that wreaked havoc in manufacturing supply chains for the past two years, the worldwide semiconductor industry is projected to invest more than $500 billion in 84 volume chipmaking facilities starting construction from 2021 to 2023, SEMI projects in its latest quarterly World Fab Forecast report. Automotive, which was particularly hard hit by chip shortages, is one of the segments fueling the spending increases.
The projected growth in global factory count includes a record high 33 new semiconductor manufacturing facilities starting construction this year and 28 more in 2023.
“The latest SEMI World Fab Forecast update reflects the increasing strategic importance of semiconductors to countries and a wide array of industries worldwide,” said Ajit Manocha, SEMI president and CEO. “The report underscores the significant impact of government incentives in expanding production capacity and strengthening supply chains. With the bullish long-term outlook for the industry, rising investments in semiconductor manufacturing are critical to laying the groundwork for secular growth driven by a diverse range of emerging applications.”
New Semiconductor Facilities Starting Construction by Region
The SEMI World Fab Forecast reports data from SEMI’s seven regions:
- In the Americas, the U.S. Chips and Science Act has vaulted the region into the lead worldwide in new capital spending as the government investment spawns new chipmaking facilities and supporting supplier ecosystems. From 2021 through next year, the Americas is forecast to start construction on 18 new facilities.
- China is expected to outnumber all other regions in new chip manufacturing facilities, with 20 supporting mature technologies planned.
- Propelled by the European Chips Act, Europe/Mideast investment in new semiconductor facilities is expected to reach a historic high for the region, with 17 new fabs starting construction between 2021 and 2023.
- Taiwan is expected to start construction on 14 new facilities, while Japan and Southeast Asia are each projected to begin building six new facilities over the forecast period. Korea is forecast to start construction on three large facilities.
The latest update of the SEMI World Fab Forecast report, published this month, lists more than 1,470 facilities and lines globally, including 162 volume facilities and lines with various probabilities that are expected to start production in 2022 or later. Download a report sample.
