The semiconductor industry is poised for a transformative period, with significant investments in new fabrication facilities set to commence in 2025. According to the latest World Fab Forecast report from SEMI, this expansion underscores the sector's commitment to advancing cutting-edge technologies and meeting escalating global demands. The construction of 18 new fabs, including both leading-edge and mainstream nodes, will bolster innovation and economic growth across various regions.

A New Wave of Semiconductor Investment Drives Global Progress

Pioneering Fabrication Projects Across Key Regions

The Americas and Japan lead the charge with four new fab projects each, signaling robust industrial momentum. These initiatives are complemented by three projects in China and Europe & Middle East, while Taiwan follows suit with two planned developments. Korea and Southeast Asia will also contribute with one project each. This geographical spread highlights the strategic importance of semiconductor manufacturing worldwide.The distribution of these projects reflects the diverse needs of regional economies. For instance, the Americas' emphasis on advanced node technology aligns with its focus on high-performance computing (HPC) and artificial intelligence (AI). In contrast, China's chip self-sufficiency strategy bolsters its efforts in automotive and Internet of Things (IoT) applications. Meanwhile, Europe's projects underscore its commitment to sustainable and innovative technologies.

Driving Forces Behind Semiconductor Capacity Growth

The anticipated capacity increase of 6.6% in 2025, reaching 33.6 million wafers per month (wpm), is primarily propelled by advancements in leading-edge logic technologies. High-performance computing (HPC) and generative AI are at the forefront, driving demand for smaller, more powerful chips. Specifically, advanced nodes (7nm and below) are projected to grow by 16%, adding over 300,000 wpm to reach a total of 2.2 million wpm in 2025.This surge in advanced node capacity supports the development of large language models (LLMs) and edge devices, which require immense computational power. Mainstream nodes (8nm~45nm) are also expanding, adding another 6% to surpass 15 million wpm. This growth caters to critical applications such as automotive electronics, IoT, and power management systems. Mature nodes (50nm and above) are growing at a more conservative rate of 5%, reflecting market recovery dynamics and lower utilization rates.

Foundry Sector Leads the Charge in Equipment Purchases

The foundry segment remains a powerhouse in semiconductor equipment procurement, with a projected 10.9% year-over-year capacity increase. By 2025, this segment is expected to reach a record 12.6 million wpm, up from 11.3 million wpm in 2024. Foundries are pivotal in supporting the rapid expansion of HPC and AI applications, ensuring that the supply chain can meet the rising demand for advanced chips.In comparison, the memory segment shows measured growth, with DRAM and NAND flash experiencing divergent trends. DRAM capacity is forecast to grow by approximately 7% to 4.5 million wpm, driven by strong AI demand. Conversely, 3D NAND capacity is expected to expand by 5%, reaching 3.7 million wpm. High-bandwidth memory (HBM) stands out with notable growth, reflecting its crucial role in data-intensive applications.

SEMI's Role in Shaping the Future of Semiconductors

SEMI, the global industry association connecting over 3,000 member companies and 1.5 million professionals, plays a vital role in fostering collaboration and addressing industry challenges. Through initiatives like Advocacy, Workforce Development, Sustainability, and Supply Chain Management, SEMI accelerates business growth and innovation. The organization's SEMICON expositions and events, along with technology communities and market intelligence, help members stay ahead in the rapidly evolving semiconductor landscape.The World Fab Forecast report, published quarterly, provides comprehensive insights into the global semiconductor industry. With data on over 1,500 facilities and lines, including 180 volume facilities expected to start operations in 2025 or later, the report serves as an indispensable resource for stakeholders. It offers detailed projections on wafer sizes, capacity expansions, and regional trends, enabling informed decision-making in this dynamic sector.