According to a statement by global semiconductor trade association SEMI, Taiwan is projected to maintain the second-largest semiconductor capacity in the world by 2024. The production capacity is expected to increase by more than 4 percent from the previous year. This growth is attributed to an anticipated recovery in global semiconductor demand in 2024 following a slump in 2023, prompting many countries to offer incentives to encourage production expansion through the construction of new wafer foundry plants and the introduction of new equipment.
SEMI's latest World Fab Forecast indicates that global semiconductor capacity is forecasted to increase by 6.4 percent in 2024, surpassing 30 million wafers per month, which would set a new record after rising by 5.5 percent to 29.6 wpm in 2023. In 2024, 42 new semiconductor fabs are expected to commence mass production, a significant increase from the 11 in 2023.
SEMI President and CEO Ajit Manocha stated that resurgent market demand and increased government incentives worldwide are driving a surge in fab investments in key chipmaking regions, contributing to the projected 6.4 percent rise in global capacity for 2024. He also emphasized the strategic importance of semiconductor manufacturing to national and economic security as a key factor in these trends.
As for specific regions, Taiwan is expected to reach 5.70 million wafers per month in 2024, representing a 4.2 percent increase from the previous year. China is expected to surpass Taiwan and become the top global capacity holder, with wafer production set to reach 8.60 million units in 2024, a 13 percent increase from the prior year. Additionally, the forecast indicates that Chinese semiconductor suppliers are projected to add 18 wafer fabs in 2024.
South Korea is anticipated to have the third-largest capacity in the world, with its wafers per month level expected to rise by 5.4 percent from the previous year to 5.10 million units in 2024. Japan is projected to increase its capacity by about 2 percent from the previous year to reach 4.70 million units in 2024, securing the No. 4 spot in the world.
In other regions, the Americas are expected to experience a 6 percent growth in semiconductor capacity to reach 3.10 million wafers per month, while capacity in Europe and the Middle East is forecasted to rise by 3.6 percent to 2.70 million wpm, and capacity in Southeast Asia is expected to rise by 4 percent to 1.70 million wpm.
The pure wafer foundry segment is anticipated to be the largest buyer of production equipment for its expansion and is likely to reach 10.20 million wafers per month in 2024, compared to the anticipated 9.3 million in 2023. In the memory chip segment, SEMI predicts that DRAM suppliers will increase capacity by 2 percent to 3.8 million wpm in 2023 and an additional 5 percent to 4 million wpm in 2024.
