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Global fab equipment spending poised to set record in 2021.

Global fab equipment spending is expected to experience a modest recovery this year after a lackluster 2019, paving the way for a robust year of investments in the semiconductor industry in 2021, according to a report by SEMI.

Over the near term at least, look for no big bounds in average fab equipment spending, according to the latest update of the SEMI World Fab Forecast report. The forecast shows a 3% year-over-year (YoY) growth to US$57.8 billion recovery in 2020. SEMI is predicting that the picture will brighten in the second half of this year as a recovery starts to take hold.

Despite expected interference from the coronavirus outbreak, China equipment spending will grow about 5% YoY to over US$12 billion this year and surge 22% YoY, or US$15 billion, in 2021. Investments by Samsung, SK Hynix, SMIC and YMTC will drive the growth.

In 2021, Taiwan is expected to be the top region in spending in 2020 with nearly US$14 billion, but sink to third in 2021 with US$13 billion. Korea is expected to be the top spender in 2021 with a 26% increase to US$17 billion.

Southeast Asia (mainly Singapore) will also register robust growth of 33% YoY, to US$2.2 billion, in 2020 and 26% in 2021.

Lagging the pack, the Americas will spend less in 2020 than in 2019, with fab equipment investments plunging 24% to US$6.2 billion, and extend the downturn with a 4% decline in 2021.

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Title Annotation:INDUSTRY REPORT
Publication:EE-Evaluation Engineering
Date:Apr 1, 2020
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