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Released May 01, 2024 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--Semiconductors, often called the "bedrock of modern technology," have garnered significant interest amid rapid technological advancements and increasing demand for electronic devices. They continue to play a critical role in powering a wide range of devices like smartphones, computers, automotive systems, aerospace equipment and industrial machinery. They include memory modules, microprocessors and integrated circuits found in a wide range of devices used in day-to-day life. According to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database, this year, major companies are investing in the manufacturing of latest-generation silicon microprocessors such as the "Foveros" technology microchips, light-emitting diode (LED) products, semiconductor packaging and testing equipment with chip sizes ranging from 4 nanometers (nm) to 28 nm.
In recent years, semiconductors have faced acute supply-chain vulnerabilities, with demand outpacing supply, causing disruptions in production and delivery. One of the biggest causes of the supply-chain crunch were the lockdowns and restrictions caused by the COVID-19 pandemic. Furthermore, trade wars between China and the U.S. over access to Taiwan's semiconductor technology and the conflict in Ukraine--a major supplier of semiconductor raw materials--worsened the shortage.
However, an equilibrium in demand and supply has been witnessed this year, with consumers actively seeking more high-value chips like those used in advanced AI systems, 5G infrastructure and autonomous vehicles. For instance, the world's largest semiconductor chip manufacturer, Taiwan Semiconductor Manufacturing Company Limited (TSMC) (Hsinchu, Taiwan) anticipates a strong demand for its 3-nm and 5-nm technologies in second-quarter 2024 due to their high levels of integration and smaller transistor sizes as compared with previous generations. Additionally, there is increased focus on enhancing performance, increasing storage capacities and achieving greater energy efficiency to meet the demands of various applications spanning data centers to consumer electronics.
The industry is bracing itself for rebound in global chip sales this year. According to a recent report by the Semiconductor Industry Association (SIA), global semiconductor industry sales increased by 16.3% in February, equaling US$46.2 billion in comparison with US$39.7 billion worth of sales in February 2023.
Industrial Info is tracking 966 active capital semiconductor-related projects worth more than US$736 billion. Out of these, 288 projects worth US$136 billion are planned to reach completion by the end of 2024. Subscribers can click here for a list of detailed project reports.
A capacity addition of 103 million square feet is anticipated, provided there are no delays in the current pipeline. While 45% of this investment is focused toward grassroot developments, 50% is geared at plant expansion. Projects worth 92% of this spending are already under construction, with 5% being engineered and 3% in their planning phases.
Asia, North America and Europe are driving the majority of spending worth more than US$73 billion, US$50 billion and US$12 billion, respectively. By country, the U.S., China and Japan are driving the highest investments, totaling up to US$95 billion. The spending by these nations is likely driven by the U.S. government's 2021 CHIPS Act, which is aimed at creating helpful incentives to produce semiconductors for America; China's "Made in China 2025" initiative, and the Japanese government's plans to invest US$67 billion in semiconductor research and development. Other countries with potential investments are Ireland, Malaysia, Singapore, Taiwan, Israel and South Korea.
The key players in the market are Intel Corporation (NASDAQ:INTC) (Santa Clara, California), TSMC and Samsung Group (Suwon-si, South Korea) with cumulative spending of more than US$80 billion.
As the leading investor, Intel has semiconductor and chip manufacturing projects in various parts of the U.S., Ireland, and Malaysia. These projects are under construction with an aggregate capacity of more than 2 million square feet. Subscribers can click here for a list of detailed project reports.
Intel also plans to expand its Fab 28 Computer Chips Manufacturing Plant in Israel to increase production capacity of its most advanced 10-nm chips. Subscribers can click here for the project report.
Going forward, a capacity of 238 million square feet is planned to be added between the years 2025 to 2030, with 664 active capital projects worth more than US$502 billion. Asia and North America continue to dominate with a cumulative market share of more than US$452 billion. About 45% of this spending is being tracked in the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
In recent years, semiconductors have faced acute supply-chain vulnerabilities, with demand outpacing supply, causing disruptions in production and delivery. One of the biggest causes of the supply-chain crunch were the lockdowns and restrictions caused by the COVID-19 pandemic. Furthermore, trade wars between China and the U.S. over access to Taiwan's semiconductor technology and the conflict in Ukraine--a major supplier of semiconductor raw materials--worsened the shortage.
However, an equilibrium in demand and supply has been witnessed this year, with consumers actively seeking more high-value chips like those used in advanced AI systems, 5G infrastructure and autonomous vehicles. For instance, the world's largest semiconductor chip manufacturer, Taiwan Semiconductor Manufacturing Company Limited (TSMC) (Hsinchu, Taiwan) anticipates a strong demand for its 3-nm and 5-nm technologies in second-quarter 2024 due to their high levels of integration and smaller transistor sizes as compared with previous generations. Additionally, there is increased focus on enhancing performance, increasing storage capacities and achieving greater energy efficiency to meet the demands of various applications spanning data centers to consumer electronics.
The industry is bracing itself for rebound in global chip sales this year. According to a recent report by the Semiconductor Industry Association (SIA), global semiconductor industry sales increased by 16.3% in February, equaling US$46.2 billion in comparison with US$39.7 billion worth of sales in February 2023.
Industrial Info is tracking 966 active capital semiconductor-related projects worth more than US$736 billion. Out of these, 288 projects worth US$136 billion are planned to reach completion by the end of 2024. Subscribers can click here for a list of detailed project reports.
A capacity addition of 103 million square feet is anticipated, provided there are no delays in the current pipeline. While 45% of this investment is focused toward grassroot developments, 50% is geared at plant expansion. Projects worth 92% of this spending are already under construction, with 5% being engineered and 3% in their planning phases.
Asia, North America and Europe are driving the majority of spending worth more than US$73 billion, US$50 billion and US$12 billion, respectively. By country, the U.S., China and Japan are driving the highest investments, totaling up to US$95 billion. The spending by these nations is likely driven by the U.S. government's 2021 CHIPS Act, which is aimed at creating helpful incentives to produce semiconductors for America; China's "Made in China 2025" initiative, and the Japanese government's plans to invest US$67 billion in semiconductor research and development. Other countries with potential investments are Ireland, Malaysia, Singapore, Taiwan, Israel and South Korea.
The key players in the market are Intel Corporation (NASDAQ:INTC) (Santa Clara, California), TSMC and Samsung Group (Suwon-si, South Korea) with cumulative spending of more than US$80 billion.
As the leading investor, Intel has semiconductor and chip manufacturing projects in various parts of the U.S., Ireland, and Malaysia. These projects are under construction with an aggregate capacity of more than 2 million square feet. Subscribers can click here for a list of detailed project reports.
Intel also plans to expand its Fab 28 Computer Chips Manufacturing Plant in Israel to increase production capacity of its most advanced 10-nm chips. Subscribers can click here for the project report.
Going forward, a capacity of 238 million square feet is planned to be added between the years 2025 to 2030, with 664 active capital projects worth more than US$502 billion. Asia and North America continue to dominate with a cumulative market share of more than US$452 billion. About 45% of this spending is being tracked in the U.S.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).
