SEMI, San Jose, Calif., has updated its SEMI World Fab Forecast outlooks for 2015 and 2016. The report reveals that fab equipment spending in 2014 increased almost 20%, and will rise 15% in 2015, increasing only 2-4% in 2016. Since November 2014, SEMI has made 270 updates on its World Fab Forecast report, which tracks fab spending for construction and equipment, as well as capacity changes, and technology nodes transitions and product type changes by fab.
Fab spending, such as construction spending and equipment spending, are fractions of a company’s total capital expenditure (capex). Typically, if capex shows a trend to increase, fab spending will follow. Capex for most of the large semiconductor companies is expected to increase by 8% in 2015, and grow another 3% in 2016.
These increases are driven by new fab construction projects and also ramp-up of new technology nodes. Spending on construction projects, which typically represents new cleanroom projects, will experience a significant -32% decline in 2015, but is expected to rebound by 32% in 2016.
Comparing regions across the world, according to SEMI, the highest fab equipment spending in 2015 will occur in Taiwan, with $11.9 billion, followed by Korea with $9 billion. The region with third largest spending, the Americas, is forecast to spend about $7 billion. Yet growth will decline in the Americas, by 12% in 2015, and decline by 12% in 2016 again.
2015 is expected to be the second consecutive year in equipment spending growth. SEMI’s positive outlook for the year is based on spending trends tracked as part of our fab investment research. The “bottom’s up” company-by-company and fab-by-fab approach points to strong investments by foundries and memory companies driving this year’s growth.
The SEMI World Fab Forecast Report lists over 40 facilities making DRAM products. Many facilities have major spending for equipment and construction planned for 2015.
Learn more at www.semi.org/MarketInfo/FabDatabase and
www.youtube.com/user/SEMImktstats.
