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06

2023

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04

As the market deteriorates, global investment in pre-process equipment for semiconductors may shrink by 22% in 2023

According to the Semiconductor Industry Association (SEMI), global investment in pre-process manufacturing equipment for semiconductor circuits will decrease by 22 percent in 2023. The reason is that companies are likely to reduce investment in response to market deterioration.


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According to the Semiconductor Industry Association (SEMI), global investment in pre-process manufacturing equipment for semiconductor circuits will decrease by 22 percent in 2023. The reason is that companies are likely to reduce investment in response to market deterioration.

 

According to a recent survey released by the International Semiconductor Industry Association (SEMI), global investment in pre-process manufacturing equipment for semiconductor circuits will fall 22% year-on-year to US $76 billion in 2023. As demand for smartphones and personal computers wanes amid global inflation, companies are cutting back on investment as markets deteriorate.

 

In addition, Japanese media quoted a set of data showing that investment in 2022 reached a record high of 98 billion US dollars. In 2023, it surpassed the previous year for the first time in four years since 2019. However, SEMI forecasts that investment will pick up again in 2024, rising 21% year-on-year to $92 billion.

 

By country and region, China's Taiwan, home to the world's largest contract semiconductor manufacturer Taiwan Semiconductor Manufacturing Co., is expected to top the list in terms of investment in 2024, up 4 percent year on year to $24.9 billion. South Korea will grow 42 percent year on year to $21 billion, putting it in second place, and mainland China at $16 billion, essentially unchanged from the previous year. SEMI attributed the lack of growth in mainland China to the impact of U.S. restrictions on exports of cutting-edge semiconductor manufacturing equipment to China.

 

World semiconductor capacity continues to grow. 7 percent year-on-year growth in 2022, 5 percent year-on-year growth in 2023 and 6 percent year-on-year growth in 2024. Investment in power semiconductors is expected to increase due to the growing demand for pure electric vehicles (EV).

 

Toshiki Kawai, president of Tokyo Electron, the Japanese semiconductor equipment maker, has a similar view. He recently said the pre-process equipment market will shrink by 20% year on year in 2023, but he expects demand for semiconductors and pre-process equipment to recover from the second half of the year and continue this trend in 2024 and 2025.

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