The latest World Fab Forecast report from SEMI suggests that fab equipment spending will rebound in 2021 after a down year in 2020, growing at a 24 percent CAGR to $67.7 billion.

Solid growth rates are projected across all product segments, with memory fabs leading global equipment spending at an estimated $30 billion. A 17 percent increase in 3D NAND memory investment and 50 percent bump in DRAM fab spending contribute to significant gains in this sector.

$29 billion in spending is forecast for the leading-edge logic and foundry sector, a 16 percent improvement after an 11 percent reduction in 2020. Notable 2021 subsegments include power electronics (67 percent), image sensors (projected 36 percent growth), and analog and mixed-signal (13 percent).

These gains come on the heels of a 15 percent decline in Q1 2020 spending attributed to the fallout from COVID-19. Overall spending for 2020 is projected to decline 4 percent.

The SEMI World Fab Forecast report also shows the worldwide fab equipment spending trough in 2020 shifting from the first to the second quarter (see figure below).

To request a sample of the report, visit www.semi.org/en/news-resources/market-data/world-fab-forecast.

For more information visit www.semi.org.

About the Author

Brandon Lewis, Editor-in-Chief of Embedded Computing Design, is responsible for guiding the property's content strategy, editorial direction, and engineering community engagement, which includes IoT Design, Automotive Embedded Systems, the Power Page, Industrial AI & Machine Learning, and other publications. As an experienced technical journalist, editor, and reporter with an aptitude for identifying key technologies, products, and market trends in the embedded technology sector, he enjoys covering topics that range from development kits and tools to cyber security and technology business models. Brandon received a BA in English Literature from Arizona State University, where he graduated cum laude. He can be reached by email at brandon.lewis@opensysmedia.com.

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