Eighteen Semiconductor Fabs Set to Break Ground by 2025

A Surge in Semiconductor Fab Construction

Get ready for some exciting news in the world of semiconductors! According to SEMI’s latest quarterly World Fab Forecast report, the semiconductor industry is gearing up for a significant expansion with

18 new fab construction projects

slated for 2025. This includes three 200 mm facilities and a whopping fifteen 300 mm fabs. Most of these projects are expected to kick off operations between 2026 and 2027.

So, where are these new fabs popping up? Well, the

Americas

and

Japan

are leading the charge with four projects each. Hot on their heels are

China

, along with the

Europe & Middle East

regions, each with three planned constructions.

Taiwan

isn’t far behind with two projects, while

Korea

and

Southeast Asia

will each see one project in 2025. It’s a fascinating landscape, don’t you think?

Investments Driving Innovation

Ajit Manocha, SEMI’s President and CEO, put it perfectly when he said, “The semiconductor industry has reached a pivotal juncture.” With investments pouring in, both

leading-edge

and

mainstream technologies

are evolving to meet the ever-changing global demands. Just think about it:

Generative AI

and

high-performance computing

are not just buzzwords; they’re driving serious advancements in logic and memory segments. Meanwhile, mainstream nodes are becoming the backbone of critical applications in areas like

automotive

,

IoT

, and

power electronics

. The commitment to building 18 new semiconductor fabs is a clear sign that the industry is all in on supporting innovation and fueling economic growth.

Forecasting the Future: 97 New Fabs

Looking ahead, the 4Q 2024 edition of the World Fab Forecast report reveals that the global semiconductor industry is planning to launch

97 new high-volume fabs

from 2023 to 2025. That’s right—48 projects are set to roll out in 2024, followed by another 32 in 2025. The wafer sizes? They range from 300 mm to 50 mm. It’s a huge leap forward for the industry!

Advanced Nodes Taking the Lead

The expansion doesn’t stop there. The semiconductor capacity is on track to grow at a

6.6% yearly rate

, hitting a total of

33.6 million wafers per month (wpm)

by 2025. This growth is largely driven by

leading-edge logic technologies

in high-performance computing applications, along with the increasing use of generative AI in edge devices.

Chip manufacturers are in a race to build advanced computing capabilities to meet the skyrocketing computational demands of

large language models (LLMs)

. They’re ramping up the production of

advanced node capacities

(7 nm and below), which are projected to see an impressive

16% yearly growth rate

. This translates to an increase of over

300,000 wpm

, bringing the total to

2.2 million wpm

by 2025.

But that’s not all! Thanks to China’s chip self-sufficiency strategy and rising demand from automotive and IoT applications,

mainstream nodes

(8 nm to 45 nm) are also set to add another

6% capacity

, surpassing the

15 million wpm

milestone in 2025. Meanwhile,

mature technology nodes

(50 nm and above) are expanding more conservatively, reflecting a market still on the mend with low utilization rates. This segment is expected to grow

5%

, reaching

14 million wpm

in 2025.

Foundry Segment on the Rise

The Foundry segment is not to be overlooked. It’s expected to remain at the forefront of semiconductor equipment purchases, with a projected capacity increase of

10.9% year-over-year

. That means we could see a jump from

11.3 million wpm

in 2024 to a record

12.6 million wpm

in 2025.

The memory segment is showing a more measured growth, with

3.5%

in 2024 and

2.9%

in 2025. But wait—there’s a twist! The surge in

generative AI

is shaking things up in the memory markets.

High-bandwidth memory (HBM)

is on the rise, creating a split in growth trends between the

DRAM

and

NAND flash

segments.

Speaking of DRAM, it’s expected to maintain robust growth, with a projected

7% year-over-year increase

, hitting

4.5 million wpm

in 2025. On the flip side, the installed capacity for

3D NAND

is anticipated to grow

5%

, reaching

3.7 million wpm

during the same period.

The Big Picture: Over 1,500 Facilities Worldwide

The latest update from SEMI’s World Fab Forecast report, published in December 2024, is nothing short of impressive. It lists more than

1,500 facilities and lines

globally, including

180 volume facilities

and lines expected to start operations in 2025 or later. The semiconductor industry is truly on the move, and it’s an exciting time to be watching how this all unfolds.

So, what do you think? Are we ready for this semiconductor revolution? One thing’s for sure: the future looks bright!

Technology Explained

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Foundry: A foundry is a dedicated manufacturing facility focused on producing semiconductor components like integrated circuits (ICs) for external clients. These foundries are pivotal in the semiconductor industry, providing diverse manufacturing processes and technologies to create chips based on designs from fabless semiconductor firms or other customers. This setup empowers companies to concentrate on innovative design without needing substantial investments in manufacturing infrastructure. Some well-known foundries include TSMC (Taiwan Semiconductor Manufacturing Company), Samsung Foundry, GlobalFoundries, and UMC (United Microelectronics Corporation).

Latest Articles about Foundry

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NAND: NAND technology is a type of non-volatile memory that is used in many computer applications. It is a type of flash memory that is used to store data in a non-volatile manner, meaning that the data is not lost when the power is turned off. NAND technology is used in many computer applications, such as solid-state drives, USB flash drives, digital cameras, and memory cards. It is also used in many embedded systems, such as cell phones, tablets, and other consumer electronics. NAND technology is a reliable and cost-effective way to store data, making it a popular choice for many computer applications.

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