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Global Semiconductor Production Capacity Hits Record High In 2022
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Global Semiconductor Production Capacity Hits Record High In 2022

Global Semiconductor Production Capacity Hits Record High In 2022

May 10, 2022

According to the latest report from IC Insights, a well-known market research institution, the total installed capacity of global semiconductors will reach 263.6 million 8-inch equivalent wafers this year, a year-on-year increase of 8.7% and a record high.

The increase in semiconductor production capacity this year is mainly due to the new large-scale memory factories of SK Hynix and Winbond, as well as the active expansion of TSMC, including the capacity growth of two advanced 5nm and 3nm processes, and the expansion of 28nm process capacity in Nanjing. TSMC is forecasting capital expenditures of more than $40 billion this year.

In the past five years, the annual growth rate of global semiconductor production capacity has increased from 4.0% in 2016 to 8.5% in 2021.

Despite inflationary pressures, ongoing supply chain issues and other economic difficulties, semiconductor demand is strong, with shipments set to grow 9.2% year over year this year. Even with 10 new fabs coming into use this year, capacity utilization could reach a high of 93% this year, slightly lower than 93.8% in 2021.

The historical statistics of IC Insights show that the growth rate of semiconductor production capacity shows a certain periodicity, with the first negative growth in 2002, and a relatively large negative growth of -6% in 2009; then it entered a boom period, which has continued to this day. The first two negative growths were the end of the dot-com bubble crisis and the global financial crisis.

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