Fab tool spend to grow 24%, says SEMI

After two years of decline, fab equipment spending is expected to increase 24% in 2014 to $35.7 billion and by about 11% to $39.5 billion in 2015.

SEMI - Fab equipment spending

2015 may surpass the historic record year of 2011 $39.8 billion.

In 2014, the three largest regions for fab equipment spending will be Taiwan with over $10.3 billion, the Americas with over $6.8 billion, and Korea with over $6.3 billion.

In 2015, these same regions will lead in spending: Taiwan will spend over $11 billion, Korea over $8 billion, and the Americas almost $7 billion.

Although in sixth in regional equipment spending this year, the Europe/Mideast region will show the strongest rate of growth, about 79% compared to the previous year.  europe is expected to grow 20% in 2015.

Because of the increased complexity of leading-edge nodes, such as more process steps and multiple patterning, fabs experience a decline in capacity as the same fab space produces less.

Worldwide, installed capacity grew by less than 2% in 2013 and is expected to grow just 2.5% in 2014 and 3% in 2015.

Foundry capacity continues to grow at 8-10% yearly (a steady pace since 2012) and Flash is up 3 to 4% for 2014. Although DRAM equipment spending is expected to grow by 40% in 2014 as many fabs upgrade to a leading-edge process, installed capacity for DRAM is expected to stay flat or even drop 2%.

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