By hmimcu Although IC Insights has revised down its 2022 global semiconductor CAPEX forecast, the revised CAPEX forecast still represents a new high level of spending. In fact, if industry CAPEX increases by double digits as predicted this year, it will also be the first three consecutive years of double-digit growth in THE semiconductor industry’s CAPEX growth since 1993-1995. hmi panel module
Fab utilization at many integrated equipment manufacturers (IDMs) remained above 90 percent in the first half of the year, and many semiconductor foundries operated at 100 percent as orders remained strong during the economic recovery of the Covid-19 pandemic.
Total semiconductor capex for both 2021 and 2022 is now expected to reach $338.6 billion. IDM and foundries are investing heavily in new manufacturing capabilities for logic and memory devices built using cutting-edge process technologies. However, strong demand and continued shortages for many other basic chips, such as power semiconductors, analog ICs, and various MCUs, have also prompted suppliers to increase their manufacturing capacity for these products.
While all of this is positive news, a menacing cloud of uncertainty hangs over the horizon. Soaring inflation and a rapidly decelerating global economy led semiconductor makers to reassess their aggressive expansion plans in mid-year. Several , but not all — vendors—notably many of the leading DRAM and flash manufacturers—have announced cuts to their capital expenditure budgets this year. More suppliers noted that capital spending is expected to cut by 2023 as the industry absorbs three years of strong spending and assesses capacity demand amid slowing economic growth.