China's wafer fab expansion speed leads the world, and the semiconductor industry is expected to grow strongly in the second half of the year
In the big chess game of the global semiconductor industry, the capacity expansion of China's wafer fabs is becoming the focus of attention of all parties. The latest industry data and market analysis reports show that the capacity expansion momentum of wafer fabs in Chinese mainland is strong, and this growth momentum is expected to be even stronger in the second half of 2024, adding strong impetus to the growth rate of the entire semiconductor industry. This not only reflects the strong strength of China's semiconductor industry, but also indicates that the global semiconductor industry pattern is ushering in new changes.
According to the International Semiconductor Industry Association (SEMI), between 2022 and 2024, the global semiconductor industry plans to open 82 new facilities. Chinese mainland chipmakers are expected to start operating 18 new projects in 2024, with capacity expected to increase by 13% from 7.6 million wafers per month in 2023 to 8.6 million wafers per month. This figure indicates that China's share of global semiconductor production capacity will further increase.
Figure: China's wafer fab expansion speed is fast
With the increase in electronics sales and the stabilization of inventories, the global semiconductor manufacturing industry has shown signs of improvement in the first quarter of 2024. Especially in Chinese mainland, the capacity utilization rate of wafer foundries has recovered quickly, which indicates that market demand is steadily picking up, providing a solid market foundation for the further expansion of wafer fabs.
The rapid expansion of China's wafer fabs has benefited from the strong support of government policies and abundant capital investment. Under the imposition of policy funds, Chinese mainland's leading wafer fabs have been able to expand production counter-cyclically, which not only accelerates capacity growth, but also lays the foundation for the long-term development of the industry.
The new U.S. export control policy on Chinese semiconductors has further stimulated the demand for domestic substitution of Chinese semiconductor equipment. The localization process in the field of domestic advanced manufacturing has accelerated, bringing new growth points to the semiconductor equipment industry.
Looking ahead, as China's fab capacity continues to increase, Chinese mainland is expected to have the world's largest IC wafer production capacity by 2026, surpassing South Korea and Taiwan. This change will not only reshape the competitive landscape of the global semiconductor industry, but also provide a strong impetus for the independent innovation and sustainable development of China's semiconductor industry.
China's fab expansion rate is leading the world, indicating that the semiconductor industry will grow more strongly in the second half of 2024. Driven by multiple favorable factors such as the steady recovery of market demand, policy and financial support, and the continued trend of domestic substitution, China's semiconductor industry is ushering in a new round of development opportunities. With the continuous expansion of production capacity and the continuous improvement of technical level, China's position in the global semiconductor industry will become more and more important, contributing to the development of the global semiconductor industry.
