Semiconductor manufacturers worldwide are forecast to expand 300 mm fab capacity at a nearly 10 percent compound average growth rate (CAGR) from 2022 to 2025, reaching an all-time high of 9.2 million wafers per month (wpm), SEMI announced in its 300 mm Fab Outlook to 2025 report. Strong demand for automotive semiconductors and new government funding and incentive programs in multiple regions are driving much of the growth.
New fabs announced by companies including GlobalFoundries, Intel, Micron, Samsung, SkyWater Technology, TSMC and Texas Instruments are ramping in 2024 or 2025 to help meet the growth in demand.
“While shortages of some chips have eased and supply of others has remained tight, the semiconductor industry is laying the groundwork to meet longer-term demand for a broad range of emerging applications as it expands 300 mm fab capacity,” said Ajit Manocha, SEMI president and CEO. “SEMI is currently tracking 67 new 300 mm fabs or major additions of new lines expected to start construction from 2022 to 2025.”
China is projected to increase its global share of 300 mm front-end fab capacity from 19 percent in 2021 to 23 percent in 2025, reaching 2.3 million wpm, a rise driven by factors including growing government investments in the domestic chip industry. With the growth, China is nearing global leader Korea in 300 mm fab capacity and expected to overtake Taiwan, now in second place, next year.
Taiwan’s worldwide capacity share is expected to slip 1 percent to 21 percent from 2021 to 2025, while Korea’s share is also projected to edge lower 1 percent to 24 percent during the same period. Japan’s share of worldwide 300 mm fab capacity is on a path to fall from 15 percent in 2021 to 12 percent in 2025 as competition with other regions increases.
The Americas’ global share of 300 mm fab capacity is forecast to rise from 8 percent in 2021 to 9 percent in 2025, driven partly by U.S. CHIPS Act funding and incentives. Europe/Mideast is projected to increase its capacity share from 6 percent to 7 percent during the same period on the strength of European CHIPS Act investments and incentives. Southeast Asia is expected to maintain its 5 percent share of 300 mm front-end fab capacity during the forecast period.
Projected Capacity Growth Rates by Product Type
From 2021 to 2025, the 300 mm Fab Outlook to 2025 shows Power-related capacity with the strongest growth at a 39 percent CAGR, followed by Analog at 37 percent, Foundry at 14 percent, Opto at 7 percent and Memory at 5 percent.
The latest update of the SEMI 300 mm Fab Outlook to 2025 report tracks 356 current and future fabs.