China Leads semiconductor wafer fab expansion in 2024

"Boosted by government funding and other incentives, China is expected to increase its share of global semiconductor production. Chinese chip manufacturers are forecast to start operations of 18 projects in 2024, with 12% YoY capacity growth to 7.6 million wpm in 2023 and 13% YoY capacity growth to 8.6 million wpm in 2024" reports SEMI, in it's latest update on semiconductor fab forecast for 2024. Further information shared by SEMI includes: Global semiconductor capacity is expected to increase 6.4% in 2024 to top the 30 million *wafers per month (wpm) mark for the first time after rising 5.5% to 29.6 wpm in 2023. The 2024 growth will be driven by capacity increases in leading-edge logic and foundry, applications including generative AI and high-performance computing (HPC), and the recovery in end-demand for chips. The capacity expansion slowed in 2023 due to softening semiconductor market demand and the resulting inventory correction. “Resurgent market demand and increased government incentives worldwide are powering an upsurge in fab investments in key chipmaking regions and the projected 6.4% rise in global capacity for 2024,” said Ajit Manocha, SEMI President and CEO. “The heightened global attention on the strategic importance of semiconductor manufacturing to national and economic security is a key catalyst of these trends.” Covering 2022 to 2024, the World F...