Huge investment from the semiconductor industry! Is the crisis over?

With the coronavirus, the semiconductor industry has taken a big hit. It seems that this crisis will not last much longer.

The global chip shortage continues to make its impact felt all over the world. Especially in the beginning of 2020, Covid-19 and the quarantine process, which affected the whole world, also negatively affected semiconductor production. Complete closure and increasing diseases in many parts of the world have led to the formation of supply chains.

As such, large technology companies had difficulty in putting their products on the market. Many products have been delayed and still have problems. According to the authorities, it is seen as 2025 at the earliest for this problem to pass. On the other hand, large companies and countries continue their investments to overcome the crisis.

Semiconductor industry to invest more than $500 Billion by 2024

SEMI unveiled its mid- to long-term plans for the semiconductor industry in its latest quarterly World Fab Forecast report today. According to the report, the global semiconductor industry will invest more than $500 billion in new factories. The mentioned growth includes 33 new semiconductor manufacturing facilities started this year, as well as 28 new semiconductor manufacturing facilities to be launched in 2023.

semiconductor industry

SEMI President and CEO Ajit Manocha made the following statements on the subject;

The latest SEMI World Fab Forecast update reflects the growing strategic importance of semiconductors for countries and a wide variety of industries around the world. The report highlights the significant impact of government incentives in expanding production capacity and strengthening supply chains. With the long-term positive outlook for the industry, increased investment in semiconductor manufacturing is critical to lay the groundwork for secular growth driven by a diverse product line.

The data in the SEMI World Fab Forecast report are as follows;

  • In America, the U.S. Processors and Science Act has placed it as a worldwide leader in capital expenditures for new chip manufacturing facilities. Between 2021 and 2023, 18 new facilities are expected to be built in the US.
  • China is still ambitious in this regard. The country is expected to surpass all other regions in new semiconductor manufacturing facilities.
  • Investment in new semiconductor facilities in Europe and the Middle East, driven by the European Chip Law, is expected to reach historic highs for the region, with 17 new factories beginning construction between 2021 and 2023.
  • Taiwan is expected to start construction of 14 new plants, while Japan and Southeast Asia are expected to start building six new plants over the forecast period. Korea is expected to begin construction of three major facilities.

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