2025 Sees Record Fab Capacity with 17 New Fabs

The semiconductor industry is gearing up for a significant expansion in silicon capacity in 2025, with a total of 17 new fabs set to come online, as projected by Knometa Research. This surge in capacity comes as a response to the market slowdown that has extended fab construction timelines out to 2025. Knometa Research anticipates a record volume of 23.1 million 200mm-equivalent wafers to be produced in 2025, signaling a major milestone for the industry.

Originally, construction on many fabs was slated to commence in 2022 with operations expected to start in 2024. However, due to the market downturn that began in 2023, the start dates for some fabs had to be postponed to 2025. These delayed fabs will join numerous others already in the pipeline for 2025, resulting in an unprecedented surge in capacity being brought online during that year, according to Knometa.

Following a notable decline in chip unit shipments in 2023, the industry is poised for a rebound, with unit growth forecasted to reach approximately 11% in both 2024 and 2025. The Global Wafer Capacity 2024 report from Knometa Research indicates that the expansion of wafer capacity in 2024 is expected to be relatively modest at 4%, as manufacturers focus on allowing capacity utilization rates to recover from the lows experienced in the previous year.

The report highlights that a staggering 23.1 million 200mm-equivalent wafers per year of fab capacity are projected to be brought into production in 2025, surpassing the previous high of 18.5 million wafers recorded in 2021. When converted to 300mm wafer equivalents, the capacity to be added in 2025 amounts to 10.3 million wafers per year, representing an 8% increase compared to the 2024 capacity level.

Knometa's analysis identifies 17 new fab lines dedicated to IC production that are scheduled to commence operations in 2025, underscoring the industry's commitment to expanding its manufacturing capabilities. The Global Wafer Capacity report offers a comprehensive overview of existing fab capacity and presents a five-year forecast extending to 2027. Originally initiated by IC Insights in 2007, the report transitioned to Knometa in December 2021, providing valuable insights into the evolving landscape of semiconductor manufacturing.

For more information and detailed insights on the semiconductor industry's wafer capacity trends, you can visit knometa.com/gwc.