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Inflation and a weak global economy have caused many chipmakers to cancel their aggressive expansion plans. But even though the capital expenditure of the semiconductor industry is reduced, the research unit IC Insights predicts that capital expenditure in 2022 will increase by 19% compared with 2021, reaching a record high of US$181.7 billion.
However, both Intel and Micron semiconductor manufacturers are reviewing their 2023 capital expenditure plans, so IC Insights revised its forecast that semiconductor industry capital expenditures will drop by 19% in 2023, amounting to US$146.6 billion. IC Insights emphasized that the capital expenditure of the semiconductor industry in 2023 will drop by 19% compared with 2022, which is the largest drop after the global financial crisis in 2008-2009.
Not only will major manufacturers reduce capital expenditures by 25%, memory manufacturers will be more affected than logic chips. Almost all semiconductor manufacturers predict that product demand will rebound in 2024~2025, and production capacity still needs to be expanded to meet demand within ten years. In 2024~2025, capital expenditure on new production capacity will grow significantly.
Fabs already under construction or equipped include American fabs such as Intel, Micron, Samsung, TSMC, and Texas Instruments, which will be launched on time, because the cost of delaying the plan will be high. After the United States introduces the Chip and Science Act, The government’s U.S. semiconductor supplier subsidies will not significantly boost spending in 2023, as manufacturers will use the subsidies they will receive to replace their own funds for investing in new capacity.
(Source of the first image: TSMC)
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