Wafer Capacity Forecast to Climb 8.7% as 10 New Fabs Enter Production
April 26, 2022 | IC InsightsEstimated reading time: 1 minute
IC Insights’ February 1Q Update to The McClean Report 2022 includes an overview of IC industry capacity and wafer start trends from 2002 through 2026.
The volatile nature of the IC industry is reflected by large swings in annual wafer starts. Over the past five years, for example, annual wafer start growth rates have ranged from -4.7% in 2019 to 19.0% growth in 2021. The industry’s installed wafer capacity also fluctuates according to market conditions, but the changes are not usually as dramatic as they are for wafer starts. The annual wafer capacity growth rates over the past five years have ranged from 4.0% in 2016 to 8.5% in 2021.
Historically, there was a net loss of wafer capacity in the IC industry in 2002—the first time in history that this happened. Seven years later in 2009, the IC industry registered an even greater net loss of wafer capacity. The record-setting 6% decline in total IC industry capacity in 2009 was caused by capital spending cutbacks of 29% in 2008 and 40% in 2009, as well as by a large amount of ?200mm wafer capacity that was taken off-line in response to the severe 2008-2009 IC market downturn. In 2021, wafer capacity grew 8.5% and it is expected to jump 8.7% in 2022, registering an all-time high in wafer starts added.
The 8.7% jump in IC industry capacity forecast for 2022 will come primarily from the addition of 10 new 300mm wafer fabs that are scheduled to open this year (three less than were added in 2021). The biggest increases in capacity are expected to come from the large new memory fabs of SK Hynix and Winbond as well as the three new fabs (two in Taiwan; one in China) from TSMC, the world’s largest pure-play foundry. Other new 300mm fabs include CR Micro’s fab for power semiconductors; Silan’s fab for power discretes and sensors; TI’s RFAB2 facility for analog devices; ST/Tower’s fab for mixed-signal, power, RF, and foundry; and SMIC’s new fab for foundry operations.
Despite inflationary pressures, ongoing supply chain issues, and other economic difficulties, IC unit demand remains robust. IC Insights forecasts IC unit shipments will increase 9.2% this year. Even with 10 new wafer fabs entering service, solid unit demand is expected to help keep the worldwide capacity utilization rate at an elevated level of 93.0% in 2022 (shown earlier), which is only a slight decline compared to 93.8% 2021.
Testimonial
"In a year when every marketing dollar mattered, I chose to keep I-Connect007 in our 2025 plan. Their commitment to high-quality, insightful content aligns with Koh Young’s values and helps readers navigate a changing industry. "
Brent Fischthal - Koh YoungSuggested Items
Kaynes Circuits to Invest $570 Million in PCB Tech India’s Tamil Nadu State
08/07/2025 | I-Connect007 Editorial TeamKaynes Circuits India, a subsidiary of Kaynes Technology India, announced on Aug. 4 that it plans to invest roughly $570 million over the next six years in the southern state of Tamil Nadu, the Economic Times reported.
Global Excellence in PCB Design: The Global Electronics Association Expands to Italy
08/07/2025 | Global Electronics AssociationIn today's rapidly evolving electronics industry, printed circuit boards (PCBs) serve as the critical backbone influencing the success, reliability, and time-to-market of countless products. Recognizing this essential role, the Global Electronics Association (formerly IPC), a worldwide leader in electronics standards, certification, and education, is now expanding its internationally acclaimed PCB design training to Italy.
AI Is the Golden Track Reviving Electronics and PCBs
08/06/2025 | Edy Yu, Chief Editor, ECIO, and the I-Connect007 Editorial TeamRemember 2021? Despite COVID, the electronics industry hit a high. Then came the slide. By 2023, the industry was deep in the red. With inflation, policy shifts, and exchange rate shocks, the problems were long, and the outlook was bleak. Recovery finally appeared in 2024, but it was fragile. Automotive electronics slumped, wireless demand stayed soft, and the ride up was anything but smooth. Yet, amid the uncertainty, one bright track emerged: artificial intelligence (AI).
Review: PCEA Orange County Summer Meeting
08/06/2025 | Dan Feinberg, Technology Editor, I-Connect007The Printed Circuit Engineering Association (PCEA) represents a community of engineers, designers, and industry influencers dedicated to the advancement of PCB technology, design, and manufacturing, and the growth and knowledge of its membership. PCEA regularly hosts events to share the latest developments, best practices, and visions for the future of electronic design and manufacturing. The Orange County chapter seems to be one of the largest and most active ones and I was invited to attend the latest chapter event on July 24 in Costa Mesa, California.
Register Now for the HATS²™ Technical Day at GEN3 HQ
08/05/2025 | GEN3GEN3 a world-leading manufacturer of testing, measurement and production solutions for electronics reliability. Headquartered in Farnborough, UK, GEN3 is announcing the final call for registrations to attend the exclusive HATS²™ Technical Day — a hands-on, live demonstration event showcasing the Highly Accelerated Thermal Shock Tester (HATS²™), the groundbreaking innovation from industry pioneer Bob Neves.