Global fab equipment spending for power and compound devices is expected to rebound in the second half of 2020 to meet resurgent end-product demand and jump 59% to a segment record US$6.9 billion in 2021, SEMI said in its recent report. The 2020 rally will help blunt a drop in annual spending, now projected at 8%, as fabs ride the COVID-19 recovery wave.
Power and compound devices are used to control electrical energy for devices across an array of industries such as computing, communications, energy and automotive. Since the widespread enactment of stay-at-home orders to curb the spread of COVID-19, demand for servers, notebooks and other electronics at the heart of online communications has surged.
The SEMI report lists more than 800 power- and compound-related facilities and lines and covers investments and capacities for the 12 years from 2013 through 2024. In 2019, the report tracked 804 facilities and lines with installed capacity of eight million wafers per month (in 200mm equivalent wafers). By 2024, 38 new facilities and lines will begin operation, fueling installed capacity growth of a cumulative 20% to 9.7 million wafers monthly, according to SEMI.
In breakdowns by region, China will expand power and compound fab capacity by 50% and 87%, respectively, from 2019-2024, more than any other region, SEMI noted. Over the same period, Europe/Mideast and Taiwan will lead the way in adding power fab capacity, while the Americas and Europe/Mideast will be among those regions adding compound fab capacity.
