Record-Breaking Typing Speed: Capacity Surpasses 30 Million Words Per Minute

According to the latest quarterly World Fab Forecast report by SEMI, global semiconductor capacity is projected to increase by 6.4% in 2024, surpassing 30 million wpm (wafer per month) for the first time. This follows a 5.5% rise to 29.6 million wpm in 2023. The growth in 2024 will be driven by capacity increases in leading-edge logic and foundry applications, such as generative AI and high-performance computing (HPC), as well as the recovery in end-demand for chips. The capacity expansion in 2023 was slowed down by softening semiconductor market demand and the resulting inventory correction.

"Resurgent market demand and increased government incentives worldwide are powering an upsurge in fab investments in key chipmaking regions and the projected 6.4% rise in global capacity for 2024," said Ajit Manocha, SEMI President and CEO. "The heightened global attention on the strategic importance of semiconductor manufacturing to national and economic security is a key catalyst of these trends."

The World Fab Forecast report covers the period from 2022 to 2024 and reveals that the global semiconductor industry plans to begin operation of 82 new volume fabs. This includes 11 projects in 2023 and 42 projects in 2024, spanning wafer sizes ranging from 300mm to 100mm.

China is expected to increase its share of global semiconductor production, boosted by government funding and other incentives. Chinese chip manufacturers are forecast to start operations of 18 projects in 2024, with a 12% year-on-year capacity growth to 7.6 million wpm in 2023 and a 13% year-on-year capacity growth to 8.6 million wpm in 2024.

Taiwan is projected to remain the second-largest region in semiconductor capacity, with a 5.6% capacity increase to 5.4 million wpm in 2023 and a 4.2% growth to 5.7 million wpm in 2024. The region is also set to begin operations of five fabs in 2024.

Korea ranks third in chip capacity, with 4.9 million wpm in 2023 and 5.1 million wpm in 2024, representing a 5.4% increase as one fab comes online. Japan is expected to be in fourth place with 4.6 million wpm in 2023 and 4.7 million wpm in 2024, a capacity increase of 2% as it starts operations of four fabs in 2024.

The World Fab Forecast report also shows that the Americas will increase chip capacity by 6% year-on-year to 3.1 million wpm, with six new fabs in 2024. Europe & Mideast is projected to increase capacity by 3.6% to 2.7 million wpm in 2024 as it launches operations of four new fabs. Southeast Asia is poised to increase capacity by 4% to 1.7 million wpm in 2024 with the start of four new fab projects.

Foundry suppliers are expected to be the top semiconductor equipment buyers, increasing capacity to 9.3 million wpm in 2023 and a record 10.2 million wpm in 2024.

In the memory segment, the expansion of capacity slowed down in 2023 due to weak demand in consumer electronics, including PCs and smartphones. However, the DRAM segment is expected to increase capacity by 2% to 3.8 million wpm in 2023 and by 5% to 4 million wpm in 2024. The installed capacity for 3D NAND is projected to remain flat at 3.6 million wpm in 2023 and rise by 2% to 3.7 million wpm next year.

In the discrete and analog segments, vehicle electrification remains the key driver of capacity expansion. Discrete capacity is forecast to grow by 10% to 4.1 million wpm in 2023 and by 7% to 4.4 million wpm in 2024, while analog capacity is projected to grow by 11% to 2.1 million wpm in 2023 and by 10% to 2.4 million wpm in 2024.

The latest update of the SEMI World Fab Forecast report, published in December, lists 1,500 facilities and lines globally, including 177 volume facilities and lines with various probabilities expected to start operation in 2023 or later.