Global corporations in the semiconductor industry are reportedly significantly expanding their production capacity to meet the growing demand for generative artificial intelligence (AI) applications.
According to the '300mm (12-inch) fab outlook report' published on the 11th by the International Society of Semiconductor Equipment Materials (SEMI), the global wafer capacity is expected to grow at an average annual rate of 7% from the end of last year until 2028. Monthly wafer production capacity is projected to reach a record high of 11.1 million units by 2028.
Analysts attribute this to the continuous expansion of advanced process production capacity. Production capacity for advanced processes below 7 nanometers (nm; 1 nm = 1 billionth of a meter) is forecasted to increase by approximately 69% from 850,000 units monthly last year to 1.4 million units by 2028, marking a record high.
SEMI expects aggressive expansion for processes below 2 nanometers, starting from less than 200,000 units this year and exceeding 500,000 units by 2028. Ajit Manocha, SEMI President and CEO, noted, "AI remains a key driver transforming the semiconductor industry," adding, "The expansion of AI applications is driving up demand for advanced chips and, accordingly, investments across the industry are becoming more active."
Investment in advanced process equipment is also expected to surpass $50 billion by 2028, up from $26 billion last year. Investment in wafer equipment for processes below 2 nanometers is projected to more than double from $19 billion last year to $43 billion by 2028, marking an increase rate of 120%.