Worldwide fab equipment spending is predicted to rise by 14% to $62.8 billion this year, reports the latest World Fab Forecast Report published by SEMI.
The increase is expected to continue, rising by 7.5% in 2019 and marking the fourth consecutive year of spending growth and the highest investment year for fab equipment in the history of the industry, according to SEMI.
Investments in new fab construction are also nearing a record with a fourth consecutive year of growth predicted and capital outlays next year approaching $17bn.
Investments for fab technology and product upgrades, as well as for additional capacity, will grow as the emergence of numerous new fabs significantly boosts equipment demand. The World Fab Forecast Report currently tracks 78 new fabs and lines that have or will start construction between 2017 to 2020 and will eventually require more $220bn in fab equipment. However, as companies continue to announce plans for new fabs, this estimate could be exceeded.
Korea is projected to lead other regions in fab equipment investments with $63bn, $1bn more than second-place China. While Europe and Southeast Asia will share sixth place, with investments totalling $8bn each.
| Above: Shows the investment potential of new fabs and lines starting construction between 2017 and 2020
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