Taiwan and China are to build more new high-volume semiconductor fabrication plants this year and next year than any other country, together contributing more than half of all new fabs in the world by constructing eight each, SEMI said in a quarterly report yesterday.
Global chipmakers are to start building 19 new high-volume fabs by the end of this year and another 10 next year to meet accelerating demand for chips from the communications, computing, healthcare, online services and automotive sectors, SEMI, an association that represents the global semiconductor sector, said in its quarterly report.
“Equipment spending for these 29 fabs is expected to surpass US$140 billion over the next few years, as the industry pushes to address the global chip shortage,” SEMI president and chief executive officer Ajit Manocha said.
Photo: Grace Hung, Taipei Times
“In the medium and longer term, the fab capacity expansion will help meet projected strong demand for semiconductors stemming from emerging applications such as autonomous vehicles, artificial intelligence, high-performance computing and 5G to 6G communications,” Manocha said.
China and Taiwan would lead the way with eight fabs each, followed by the Americas with six, Europe and the Middle East with three combined, and Japan and South Korea with two each, the report said.
In Taiwan, chipmakers such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Powerchip Semiconductor Manufacturing Co (力積電) and Vanguard International Semiconductor Corp (世界先進) are investing in new foundry fabs, SEMI said.
TSMC has raised its capital spending budget for this year to a record US$30 billion, and Vanguard, which makes driver ICs for displays and power management ICs, also boosted its capital expenditure for this year by 41 percent to NT$8.5 billion, while Powerchip in March started building a new 300mm fab with an initial investment of NT$278 million.
Chinese semiconductor firms are investing in fabs that make memory chips, foundry or auto chips, rather than advanced chips, SEMI said.
Fabs that produce 300mm wafers would account for most of the new facilities, with construction beginning on 15 fabs this year and seven others next year, SEMI said.
The remaining seven fabs planned over the two-year period would be 100mm, 150mm and 200mm facilities, it added.
The 29 fabs could produce as many as 2.6 million wafers per month in 200m equivalents, the report said.
Of the semiconductor makers beginning construction of new fabs this year, some would start installing equipment next year, but most would not do so until 2023, the report added.
An index launched a year ago to give investors greater exposure to China’s Internet giants is now the world’s worst-performing major technology gauge. The Hang Seng Tech Index has been on a roller-coaster ride in the past 12 months. The gauge, which marks its first anniversary on Tuesday, was up 59 percent at its February peak, but has since seen more than US$551 billion in market value wiped out amid Beijing’s clampdown on the sector. That has reduced its gain to nearly 6 percent, compared with more than 40 percent for the MSCI World Information Technology Index and the NASDAQ-100 Index. The
Taiwan should protect its vaccine supply chain and invest in vaccine development after seeing how the COVID-19 pandemic has inflicted tremendous social and economic losses worldwide, Sanofi Pasteur Hong Kong & Taiwan general manager Philip Ho said in an interview this week. “When you look at the trillions of dollars that countries have lost, parents who are forced to stay at home with their children and various restrictions imposed following a nationwide lockdown, we really see what we are losing compared with what we can benefit from vaccination,” Ho said. While the government has been trying to secure vaccines since the middle
The next target for China’s cybersecurity crackdown is to be the pools of data collected by the latest generation of vehicles. This approach risks Beijing shooting itself in the foot, and jeopardizing its ambitious plans to lead the global race for electric and autonomous vehicles. China wants to have control over the information vehicles have about their drivers, the roads they traverse, and the faces and voices they pass, according to a draft law on data-security management for the automotive industry issued in May. It seeks to ensure manufacturers across the auto supply chain keep data in the country and pass
EDUCATION AS WELFARE: New regulations threaten to upend the lucrative private education sector that teaches the public school curriculum to paying families China unveiled a sweeping overhaul of its US$100 billion education tech sector, banning companies that teach the school curriculum from earning profit, raising capital or going public. Beijing on Saturday published an array of regulations that together threaten to overturn the sector and jeopardize billions of dollars in foreign investment. Companies that teach school subjects can no longer accept overseas investment, which could include capital from the offshore registered entities of Chinese firms, according to a notice released by the Chinese State Council. Those in violation of that rule must take steps to rectify the situation, the country’s most powerful administrative