In 2020, semiconductor manufacturers are expected to produce more wafers on improving market conditions, according to a report by IC Insights on Dec. 20.
In its Global Wafer Capacity 2020-2024 report, the company said the IC industry’s wafer production capacity will jump next year to grow by a record-breaking clip in 2021. This is because in 2020, equipment capable of pushing up the annual 200mm wafer production by up to 17.9 million will be added. In 2021, more will be installed to push up the annual production by 20.8 million.
A large part of the capacity growth will originate from China owing to companies like Samsung Electronics and SK hynix, along with national firms like YMTC and Hua Hong Semiconductor. Out of the 10 new 300mm wafer fab facilities forecast to open in 2020, two is likely to be in China.
This year, capacity had grown just 7.2 million after memory chip makers cut down on their production expansion plans on dipping ASP of DRAM and NAND flash chips. The global semiconductor equipment operation stood at 86% this year, down from last year’s 94%.
Reflecting the forecasts of a turn-around, Samsung Electronics recently made it official that it would be making its phase 2 investment amounting to around $15 billion into its 3D NAND flash chip-making facility in Xian of China whose monthly production capacity will then reach around 130,000.
SEMI also forecast investment volume into semiconductor equipment to grow to $60.8 billion in 2020. In 2021, SEMI said the figure would further grow to $66.8 billion.
According to IC Insights, semiconductor production grew an average 5.1% a year between 2014 and 2019. IC Insights put it at around 5.9%.
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