Fab equipment spending increased 16% in 2020

Fab equipment spending in 2020 increased 16% compared to 2019, according to SEMI.

Spending is expected to increase 15.5% this year to reach over US$70 billion, according to the organization. It will increase 12% in 2022 to over US$80 billion.

Fab equipment spending increased substantially for three years in a row from 2016 to 2018 due to the so-called super-cycle in the semiconductor industry. It was the first time spending increased for three straight years since the mid-1990s.

Spending will be focused on foundry and memory. Spending in foundry equipment is expected to increase 23% to US$32 billion this year. However, spending will stay flat in 2022.

For memory, spending is expected to be US$28 billion this year, a single digit growth from 2020. Spending on DRAM will exceed those for NAND flash. Next year, spending will increase 26%, thanks to increased investments into both DRAM and NAND flash expected in 2022, SEMI said.

Spending increase is also expected for power semiconductors and microprocessor units. Spending in power semiconductors will increase 46% this year and 26% in 2022, SEMI estimates. MPU will grow 40% in 2022, the organization said.

SEMI’s estimates come from survey of a total of 1,374 semiconductor production facilities.