Wafer Capacity Forecast to Climb 8.7% as 10 New Fabs Enter Production
April 26, 2022 | IC InsightsEstimated reading time: 1 minute
IC Insights’ February 1Q Update to The McClean Report 2022 includes an overview of IC industry capacity and wafer start trends from 2002 through 2026.
The volatile nature of the IC industry is reflected by large swings in annual wafer starts. Over the past five years, for example, annual wafer start growth rates have ranged from -4.7% in 2019 to 19.0% growth in 2021. The industry’s installed wafer capacity also fluctuates according to market conditions, but the changes are not usually as dramatic as they are for wafer starts. The annual wafer capacity growth rates over the past five years have ranged from 4.0% in 2016 to 8.5% in 2021.
Historically, there was a net loss of wafer capacity in the IC industry in 2002—the first time in history that this happened. Seven years later in 2009, the IC industry registered an even greater net loss of wafer capacity. The record-setting 6% decline in total IC industry capacity in 2009 was caused by capital spending cutbacks of 29% in 2008 and 40% in 2009, as well as by a large amount of ?200mm wafer capacity that was taken off-line in response to the severe 2008-2009 IC market downturn. In 2021, wafer capacity grew 8.5% and it is expected to jump 8.7% in 2022, registering an all-time high in wafer starts added.
The 8.7% jump in IC industry capacity forecast for 2022 will come primarily from the addition of 10 new 300mm wafer fabs that are scheduled to open this year (three less than were added in 2021). The biggest increases in capacity are expected to come from the large new memory fabs of SK Hynix and Winbond as well as the three new fabs (two in Taiwan; one in China) from TSMC, the world’s largest pure-play foundry. Other new 300mm fabs include CR Micro’s fab for power semiconductors; Silan’s fab for power discretes and sensors; TI’s RFAB2 facility for analog devices; ST/Tower’s fab for mixed-signal, power, RF, and foundry; and SMIC’s new fab for foundry operations.
Despite inflationary pressures, ongoing supply chain issues, and other economic difficulties, IC unit demand remains robust. IC Insights forecasts IC unit shipments will increase 9.2% this year. Even with 10 new wafer fabs entering service, solid unit demand is expected to help keep the worldwide capacity utilization rate at an elevated level of 93.0% in 2022 (shown earlier), which is only a slight decline compared to 93.8% 2021.
Suggested Items
Elevating PCB Design Engineering With IPC Programs
04/24/2024 | Cory Blaylock, IPCIn a monumental stride for the electronics manufacturing industry, IPC has successfully championed the recognition of the PCB Design Engineer as an official occupation by the U.S. Department of Labor (DOL). This pivotal achievement not only underscores the critical role of PCB design engineers within the technology landscape, but also marks the beginning of a transformative journey toward nurturing a robust, skilled workforce ready to propel our industry into the future.
Real Time with... IPC APEX EXPO 2024: Going Vertical: SCHMID's Advanced Solutions for Printed Circuit Boards
04/24/2024 | Real Time with...IPC APEX EXPOEditor Marcy LaRont chats with Bob Ferguson, the president of SCHMID, about advanced solutions for PCBs and the equipment they are highlighting at this year's show. He delves into vertical no-touch handling systems and the prospect of achieving sub-10-micron lines. Inspired by SCHMID's technology, Bob expresses excitement about where the industry is today.
Big Win for Defense Production Act Budget Allocation in FY24 Budget
04/23/2024 | I-Connect007 Editorial TeamOne year ago, President Biden issued a determination that chips and packaging are critical for national security. Since that time, much work has been done to continue the conversation in Washington, elevating the importance of the entire chips value chain, and including printed circuit boards and substrates, without which chips cannot operate.
Zentech’s Board of Directors Announces the Return of Matt Turpin as President and CEO
04/22/2024 | Zentech ManufacturingTurpin draws upon over 35 years of experience in the electronics industry and has an 18-year history with Zentech. He previously served as President and CEO from 2006 to 2019 after which time he has remained active in the EMS industry as an advisor to Zentech and other industry organizations.
Aaron Woolf, Dylan Peterson Join SIA Team
04/22/2024 | SIAThe Semiconductor Industry Association (SIA) announced Aaron Woolf and Dylan Peterson have joined the SIA team. Woolf will serve as director of global policy for economic security and Peterson will be a communications associate. SIA represents 99% of the U.S. semiconductor industry by revenue and nearly two-thirds of non-U.S. chip firms.