China to dominate fab building with 10 planned

June 16, 2016 // By Peter Clarke
The construction of at least 19 wafer fabs will start in 2016 and 2017 but that list will be dominated by China, which is responsible for more than half of them, according to industry body SEMI.

As a result spending on chipmaking equipment which had started slowly in 2016 will pick up and result in a market worth $36 billion in 2016, up 1.5 percent on 2015 and rise to $40.7 billion in 2017, up 13 percent year-on-year.

Fab equipment spending including new, secondary, and in-house declined by 2 percent in 2015.  Activity in the 3D NAND, 10nm logic, and foundry segments is expected to push equipment spending up in 2016 and 2017.  

SEMI has listed 19 wafer fab projects with a probability of happening on time of 60 percent or higher. While some are already underway, others may be subject to delays or pushed into the following year. 

Breaking down the 19 projects by wafer size, 12 of the fabs and lines are for 300mm (12-inch), four for 200mm, and three LED fabs (one each for 150mm, 100mm, and 50mm).  Not including LEDs, the potential installed capacity of all these fabs and lines is estimated at almost 210,000 wafer starts per month (in 300mm equivalents) for fabs beginning construction in 2016 and 330,000 wafer starts per month (in 300mm equivalents) for fabs beginning construction in 2017.

Table 2 lists all construction projects – including new and ongoing – planned for 2016 and 2017, by wafer size, with total estimated spending of $13.9 billion.

www.semi.org