6 May 2020
Power and compound semi fab spending to rebound in second-half 2020, then grow 59% to record $6.9bn in 2021
Global fabrication plant equipment spending for power and compound semiconductor devices is expected to rebound in second-half 2020 to meet resurgent end-product demand and jump 59% to a segment record of US$6.9bn in 2021, according to the ‘Power & Compound Fab Report to 2024’ from industry association SEMI. The 2020 rally will help to blunt a drop in annual spending, now projected to be 8%, as fabs ride the COVID-19 recovery wave, adds the report.
Power and compound semiconductor devices are used to control electrical energy for devices across an array of industries such as computing, communications, energy and automotive. Since the widespread enactment of stay-at-home orders to curb the spread of the COVID-19 coronavirus, demand for servers, laptops and other electronics at the heart of online communications has surged.
The report lists more than 800 power- and compound-related facilities and lines and covers investments and capacities for the 12 years from 2013 through 2024. In 2019, the report tracked 804 facilities and lines with installed capacity of 8 million wafers per month (in 200mm-equivalent wafers). By 2024, 38 new facilities and lines will begin operation, fueling installed capacity growth of a cumulative 20% to 9.7 million wafers per month.
By region, China will expand power and compound semiconductor fab capacity more than any other region, by 50% and 87% respectively, from 2019-2024. Over the same period, Europe/Middle-East and Taiwan will lead the way in adding power fab capacity, while the Americas and Europe/Middle-East will be among those regions adding compound fab capacity, the report concludes.