Semiconductor super cycle: Market trends, drivers and forecasts

By Lara Chamness, SEMI

2017 will be a record-breaking year. Semiconductor sales will exceed $400 billion for the first time and semiconductor equipment sales will finally shatter the historic high set in 2000. What is driving this growth?

Monolithic demand drivers have been replaced by a diversity of applications including: Augmented Reality, Virtual Reality, Artificial Intelligence, cloud storage, Smart Automotive (driver assistance and autonomous), Smart Manufacturing, and Smart MedTech. These proliferating demand drivers and ensuing increasing silicon (semiconductor) content in electronics is fueling what many are calling a “super cycle.” The overwhelming majority of semiconductor devices used to enable these end markets are commodities, creating a renaissance for smaller wafer diameter fabs (200mm and smaller).

Not only are legacy fabs seeing a resurgence, the industry is seeing the evolution of China transitioning away from primarily being a consumer of chips towards developing a self-sufficient semiconductor supply chain. Spurred by the 2014 National IC Guideline, all IC ecosystem sectors in China made significant progress in 2016. Such as IC design becoming the largest semiconductor sector, surpassing IC packaging and test, with over 1,300 vendors. Advancements have been made in chip production with over 24 new fab construction projections underway or planned, prompting the wafer fab equipment market to exceed $11 billion in 2018 and to potentially surpass $18 billion by 2020.

SEMI’s complimentary webinar will take place on Thursday, November 9, 2017.

In this webinar, an overview of the latest semiconductor market trends, drivers and forecasts will be discussed. Segments covered will include fab capacity, equipment, and materials trends as well as discuss year-to-date data based on SEMI’s data collection programs. SEMI will provide a market update with data from SEMI’s Industry Research & Statistics Reports and Database, specifically highlighting two recently released reports: 200 mm Fab Outlook to 2021 and SEMI China IC Industry Outlook2017.

REGISTER for WEBINAR: 8:00am – 8:45am PST, Thur., Nov. 9, 2017

 

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