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Record Spending for Fab Equipment Expected This Year

Spending will reach an industry all-time record of over $46 billion in sales for 2017.

If SEMI’s updated World Fab Forecast report is on target, fab equipment spending will reach an industry all-time record of over $46 billion in sales for 2017. (See chart.) SEMI expects that record to be broken yet again in 2018, when the market reaches the $50 billion mark. These record-breaking years are part of three consecutive years of growth (2016, 2017, and 2018), which has not occurred since the mid-1990s, according to SEMI.

One reason for the boom is China. SEMI is projecting that China will be ranked third for regional spending in 2017. It is equipping 48 fabs this year, with equipment spending estimated to be $6.7 billion. SEMI predicts China will equip 49 fabs in 2018, with equipment spending of about $10 billion.

SEMI’s World Fab Forecast report provides updates to 282 facilities and lines equipping in 2017, 11 of which are expected to spend over $1 billion each in 2017, the company reports. In 2018, SEMI's data reflect 270 fabs to equip, with 12 facilities spending over $1 billion each.


Source: World Fab Forecast report February 2017, SEMI

 

TAGS: Industrial
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