Taiwan-based fab toolmakers are set to join their international bigger peers to gain from higher capital spending among major foundries from 2021 through 2023, judging from their order visibility already extended to 2023, according to industry sources.
Foxsemicon Integrated Technology, Gongin Precision Industrial (GPI), Grand Process Technology, Gudeng Precision Industrial, Marketech International and United Integrated Services (UIS), as well as backend equipment specialists such as All Ring Tech and Scientech, are all poised to generate impressive sales over the next three years, particularly those in TSMC's supply chain, the sources said.
Gudeng, which commands the majority of the global supply of EUV pods thanks to orders from TSMC, is reportedly expanding its factory site in northern Taiwan with construction of the new facilities slated to complete at the end of 2022. The expanded site will boost the overall output at the site by over 100%, the sources suggested.
Foxsemicon, a contract manufacturing partner of Applied Materials, is also expected to gain more businesses from its close tie with the US-based front-end equipment vendor, the sources indicated.
TSMC already set its capex target for 2021 at a record-high US$25-28 billion, and disclosed recently plans to spend a total of US$100 billion on capacity expansion projects in the next three years.
Some market observers expect TSMC to raise its capex target this year. The foundry is scheduled to hold its quarterly investors conference call on April 15.
According to SEMI, the global semiconductor industry is on track to register a rare three consecutive years of record highs in fab equipment spending with a 16% increase in 2020 followed by forecast gains of 15.5% this year and 12% in 2022. The bulk of fab investments in 2021 and 2022 will be seen in the foundry and memory sectors.