Chip manufacturing capacity is projected to grow by 6% in 2024 and 7% in 2025, reaching 33.7 million wafers per month (8-inch equivalent) as per SEMI. Leading-edge capacity, mainly for 5nm nodes and under, will increase by 13% in 2024, driven by AI applications. Intel, Samsung, and TSMC are preparing to produce 2nm GAA chips, leading to a 17% growth in leading-edge capacity in 2025.
CEOs of SEMI, Ajit Manocha, highlighted that AI processing is driving the need for high-performance chips, fueling the global expansion of semiconductor manufacturing.
In regions, Chinese chipmakers are set to grow their capacity by 14% in 2025, with investments from major players to increase manufacturing. Despite the risks of oversupply, China continues to invest to mitigate export controls' impacts.
While China sees rapid expansion, other regions are expected to grow by no more than 7% in 2025. Taiwan and South Korea are anticipated to rise in capacity, with Taiwan reaching second place in 2025.
The foundry segment will see an 11% increase in capacity in 2024 and 10% in 2025. DRAM capacity is expected to rise by 9% annually in both 2024 and 2025, contrasting with the slow recovery of the 3D NAND market.
With AI applications increasing in edge devices, there will be a surge in DRAM content in smartphones and laptops, creating additional demand for DRAM.
