Chipmaking equipment spending spree to slow in 2023
Global sales of total semiconductor manufacturing equipment by original equipment manufacturers are forecast to reach $120.8 billion in 2023 up 2.8 percent from $117.5 billion in 2022, according to SEMI.
This slowdown will after a 14.7 percent increase in 2022, the industry association estimates.
Both the front-end and back-end semiconductor equipment segments are contributing to the market expansion.
Global chipmaking equipment sales by segment forecast 2020 through 2023. Source: SEMI
The wafer fab equipment segment, which includes wafer processing, fab facilities, and mask/reticle equipment, is projected to expand 15.4 percent to $101 billion in 2022, followed by a 3.2 percent increase to $104.3 billion in 2023.
The foundry and logic segments are expected to increase 20.6 percent year-over-year to $55.2 billion in 2022 and another 7.9 percent, to $59.5 billion, in 2023. The two segments account for more than half of total wafer fab equipment sales.
Global wafer fab equipment sales by application forecast 2020 through 2023. Source: SEMI
Strong demand for memory and storage continues to contribute to DRAM and NAND equipment spending this year. The DRAM equipment segment is leading the expansion in 2022 with expected growth of 8% to $17.1 billion. The NAND equipment market is projected to grow 6.8% to $21.1 billion this year. DRAM and NAND equipment expenditures are expected to slip 7.7% and 2.4%, respectively, in 2023.
After surging 86.5 percent in 2021, the assembly and packaging equipment segment is expected to grow 8.2 percent to $7.8 billion in 2022 and edge down 0.5 percent to $7.7 billion in 2023. The semiconductor test equipment market is forecast to grow 12.1 percent to $8.8 billion in 2022 and another 0.4 percent in 2023 on demand for high-performance computing applications.
Taiwan, China, and Korea are projected to remain the top three equipment-buying regions in 2022. Taiwan is expected to regain the top position in 2022 and 2023, followed by China and Korea.
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