Fab equipment spending will hit record numbers in 2021 thanks to the growth of the memory market, according to SEMI.
Fab equipment spending in 2020 will increase 8% from a year prior to US$63.2 billion.
Next year, this will increase by 13% year over year to reach US$65.5 billion, SEMI said.
Demand from PC, gaming and healthcare rose this year due to the COVID-19 pandemic. Demand for memory were especially high from data centers and servers. Company’s increasing their stock in light of the US-China trade dispute also increased demand.
Spending will be the highest in the memory sector. Fab equipment spending in the memory sector is expected to be US$26.4 billion this year. This will increase by 18% to US$31.2 billion in 2021.
3D NAND spending will increase by 39% this year and 7% in 2021, SEMI said. DRAM on the other hand will grow 4% in 2020 and 39% in 2021.
Spending in foundry will be the second highest in 2020 at US$23.2 billion, a rise of 12% from 2019. This will increase by 2% next year.
MPU equipment spending however is expected to drop 18% this year. In 2020 this will rise again, increasing 9% to US$6 billion.
Analogue semiconductor spending will increase by 48% in 2020 and 6% in 2021. This is thanks to aggressive spending in mixed-signal semiconductor and power semiconductor.
Image sensor spending will be US$3 billion in 2020 but this will grow 11% in 2021 to US$3.4 billion.