Eighteen New Semiconductor Manufacturing Facilities Set to Launch by 2025
Expanding Horizons in the Semiconductor Industry
The semiconductor market is poised for a pivotal transformation as reports indicate the commencement of 18 new fabrication facilities in 2025. According to the latest quarterly insights from SEMI, this expansion spans regions including the Americas, Japan, and more, signaling robust growth in this high-demand sector.
A Significant Increase in Semiconductor Capacity
These new fabs, consisting of three 200mm and fifteen 300mm projects, are scheduled to begin operations between 2026 and 2027. The geographical distribution highlights a balanced growth strategy, with the Americas and Japan each leading with four new projects. China and Europe, including the Middle East, follow closely with three facilities each, while Taiwan will see two and Korea alongside Southeast Asia will each welcome one.
Ajit Manocha, President and CEO of SEMI, underscored the industry’s current juncture, stating, "The semiconductor industry is experiencing a significant shift. Investments are now driving both advanced and mainstream technologies to tackle the evolving global demands. Advances in generative AI and high-performance computing are exhilarating the development of essential logic and memory segments."
Projected Growth and Technological Advancements
From 2023 to 2025, SEMI forecasts a total of 97 new high-volume fabs, with 48 slated for 2024 and 32 for 2025. This ambitious growth reflects the industry's commitment to sustaining innovation and encouraging economic growth in parallel. Indeed, capacity growth in semiconductor manufacturing is predicted to rise at a rate of 6.6% per annum, reaching a staggering 33.6 million wafers per month by 2025.
The expected technological advancements are particularly driven by the surge in demand for leading-edge logic processes triggered by high-performance computing and generative AI, especially in edge devices. Chip manufacturers are rapidly increasing capacities for advanced nodes (7nm and below), which are projected to rise by 16% yearly, bringing more than 300,000 wafers per month to total approximately 2.2 million wafers in 2025.
Conversely, traditional nodes (8nm-45nm) are gaining traction, fueled by China's strategy for chip self-sufficiency and demanding automotive and IoT applications. This sector is anticipated to see a 6% capacity increase, crossing the 15 million wafers per month milestone. In contrast, mature technology nodes (50nm and above) are growing more conservatively, with a modest 5% increase expected in 2025, driven by a slow recovery and underutilized capacities.
Foundry Segment Maintains Strong Momentum
The foundry segment is projected to lead the semiconductor industry in equipment purchases, expecting a 10.9% growth year-on-year, pushing capacity from 11.3 million wafers in 2024 to an anticipated 12.6 million wafers in 2025. This robust growth is supported by advancements in memory types driven by generative AI needs. For instance, high-bandwidth memory (HBM) is witnessing unprecedented demand, shifting capacity trends significantly between DRAM and NAND flash sectors.
Specifically, the DRAM sector projects impressive growth, forecasting a near 7% year-on-year increase to 4.5 million wafers per month by 2025. In stark contrast, the capacity for 3D NAND is projected to increase modestly, reaching 3.7 million wafers within the same period. This variance in growth underscores how technology is adapting to meet the demands of today's digital landscape.
Conclusion: The Future of Semiconductor Manufacturing
SEMI's World Fab Forecast highlights over 1,500 facilities globally with an extensive line-up of new projects, with a focus on the increasing demands of a modernized world. The transition in the semiconductor manufacturing landscape not only reinforces the necessity for innovation but also enhances economic potentials across regions. As we look towards 2025 and beyond, the semiconductor industry stands at the brink of substantial evolution, promising a future laden with technological advancements and increased capacities.