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Sanjay Malhotra, SEMI’s VP of corporate marketing and MIT SEMI, had shared, that present and upcoming technology trends will drive demand (for chips)) up to a trillion dollars a year.
He shared this when talking about the ongoing fab construction to add semiconductor capacity, during SEMICON SEA 2022.
Within the 5-year time frame of 2020 till 2024, Sanjay shared there will be 25 wafer fabrication factories, or fabs, producing chips based on 200mm wafers. Out of all these, one is located in Malaysia via German semiconductor player, Infineon.
Sixty seven fabs producing chips based on 300mm wafers will also come online, out of which two are located in Singapore.
Within the 5-year time frame of 2020 till 2024, Sanjay shared there will be 25 wafer fabrication factories, or fabs, producing chips based on 200mm wafers. Out of all these, one is located in Malaysia via German semiconductor player, Infineon.
Fab building just can’t ramp up fast enough…
“It takes three to four years for a factory to produce at full capacity. Even before the chip shortage, the industry was planning for their future and expanding capacity. Between the supply chain disruptions and all, the industry just can’t ramp up fast enough,
He had explained that there is a lot of activity that has to happen after the factoring building is completed.
Fitting out the fab with equipment and tools could take three to six quarters or even more, depending on the number of process technologies that are being used.
“It just takes time,” Sanjay said of the duration if takes for fabs to achieve full capacity production.
The winners?
Sanjay observed that each region is adding 300mm semiconductor capacity and moving up over the past several years. Between 2020 till 2024, the anticipated CAGR is 10-percent with China, Taiwan, and Korea leading the expansion.
Fitting out the fab with equipment and tools could take three to six quarters or even more, depending on the number of process technologies that are being used.
Chips produced with the 200mm fab wafer, is also experiencing a resurgence due to new applications like IoT and automotive technologies. China leads the charge for 200mm fab wafer at over 5-percent.
Southeast Asia expects to see 3 new fabs coming online soon, and overall Sanjay sees that there is diversification in terms of source of capacity, with semiconductor capacity building spread across all regions, globally.
Sanjay emphasised, “SEMI’s interest is to capture the data accurately and present it to our members, the media, and governments.
The Act which is currently delayed, aims to reverse the decline in modern semiconductor manufacturing capacity, being located in the United States.
“That said, I will also say there has been a lot of noise and activity about the US Chips Act.”
The Act which is currently delayed, aims to reverse the decline in modern semiconductor manufacturing capacity, being located in the United States.
“It’s not that the US is getting ahead, they are just keeping pace. And if they want to keep pace, they need to implement incentives to keep pace with other countries,” Sanjay said, adding that every country needs to look at how best to promote the industry in the region that they are located in.
Cat Yong is Editor-in-Chief of Enterprise IT News, a regional news website which began in Malaysia circa 2011. A common theme in all of her work - opinions, analysis, features and more - is how technology and innovation drives business and outcomes.
A career tech journalist for 22 years, her work has evolved to also encompass narratives of tech powering human potential.
