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Global semiconductor capital spending will reach $185.5 billion this year, up 24% from a year earlier

Update time : 2022-08-23 16:11:17

According to the latest data released by leading semiconductor analysts IC Insights, the three-year period 2020-2022 will be the first three-year period of double-digit capital expenditure growth since 1993-1995.

IC Insights has adjusted its 2022 global semiconductor capital expenditure forecast, which now shows a 21% increase this year to $185.5 billion, as shown in the chart below.

This is a reduction from the $190.4 billion and 24% growth forecast earlier this year. Despite the downward revision, the revised capex forecast still represents a new high level of spending.
Utilisation rates remain well above 90% for many IDM plants and 100% for many pure-play foundries in the first half of the year, as the economic recovery during the epidemic has kept orders strong.
Semiconductor capital expenditure is now expected to reach $338.6 billion for the two years 2021 and 2022 combined, and IDMs and foundries are investing heavily in expansions to build logic and storage devices using leading-edge process technologies. However, strong demand and continued shortages of many other important chips, such as power semiconductors, analogue ICs and various MCUs, have led suppliers to increase manufacturing capacity for these products as well.
Despite all this positive news, soaring inflation and a rapidly slowing global economy led semiconductor manufacturers to re-evaluate their aggressive expansion plans mid-year. Several (but not all) suppliers, notably many of the leading DRAM and flash memory manufacturers, have already announced cuts to their capital expenditure budgets for the year. Many more suppliers have indicated that they expect to reduce capital expenditures in 2023 if capacity requirements are assessed on the basis of the industry absorbing three years of strong spending and slower economic growth.

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