Global 300mm Semiconductor Fab Capacity Projected To Grow At 10% CAGR By 2025: Report

The semiconductor manufacturers worldwide forecast the 300mm fab capacity to expand at a nearly 10 per cent compound average growth rate (CAGR) between 2022 and 2025, according to a report.

This will mean that the capacity will reach an all-time high of 9.2 million wafers per month (wpm), SEMI announced today in its 300mm Fab Outlook to 2025 report. Strong demand for automotive semiconductors and new government funding and incentive programs in multiple regions are driving much of the growth.

New fabs announced by companies including GlobalFoundries, Intel, Micron, Samsung, SkyWater Technology, TSMC and Texas Instruments are ramping in 2024 or 2025 to help meet the growth in demand.

"While shortages of some chips have eased and supply of others has remained tight, the semiconductor industry is laying the groundwork to meet longer-term demand for a broad range of emerging applications as it expands 300mm fab capacity," said Ajit Manocha, SEMI President and CEO. "SEMI is currently tracking 67 new 300mm fabs or major additions of new lines expected to start construction from 2022 to 2025."

China is projected to increase its global share of 300mm front-end fab capacity from 19 per cent in 2021 to 23 per cent in 2025, reaching 2.3 million wpm, a rise driven by factors including growing government investments in the domestic chip industry. With the growth, China is nearing global leader Korea in 300mm fab capacity and expected to overtake Taiwan, now in second place, next year.

Taiwan's worldwide capacity share is expected to slip 1 per cent to 21 per cent from 2021 to 2025, while Korea's share is also projected to edge lower 1 per cent to 24 per cent during the same period. Japan's share of worldwide 300mm fab capacity is on a path to fall from 15 per cent in 2021 to 12 per cent in 2025 as competition with other regions increases. 

The Americas' global share of 300mm fab capacity is forecast to rise from 8 per cent in 2021 to 9 per cent in 2025, driven partly by U.S. CHIPS Act funding and incentives. Europe/Mideast is projected to increase its capacity share from 6 per cent to 7 per cent during the same period on the strength of European CHIPS Act investments and incentives. Southeast Asia is expected to maintain its 5 per cent share of 300mm front-end fab capacity during the forecast period.