SEMI recently posted a revision to its 2021 global component fabrication equipment spending forecast and now predicts a 24 percent year-over-year increase. The organization believes corporations will direct a record $67.7 billion to microelectronics production machinery next year, up 10 percent from its previous projection.
SEMI also offered an update on 2020 manufacturing hardware sales in the post-coronavirus pandemic landscape.
SEMI’s 2021 Global Semiconductor Fabrication Equipment Forecast
The industry organization notes memory production machinery purchases will expand the wider market in 2021, with expenditures totaling $30 billion. The firm expects DRAM fabrication equipment to experience the highest amount of growth from 2019 at 50 percent. Besides, the group estimates the 3D NAND segment, which expanded by 8.3 percent in Q1 2020, will rise by 11 percent next year.
SEMI’s outlook indicates power-related semiconductor production machinery sales will jump by a whopping 67 percent in 2021. The organization predicts image sensors, and analog and mixed-signal fabrication tools will see gains of 36 and 16 percent in the same period.
Like ResearchandMarkets, SEMI’s data indicates global digital transformation will drive long-term demand for server and cloud services processors. Similarly, the firm’s report aligns with Business Korea’s prediction that PlayStation 5 volume production will increase interest in NAND modules.
SEMI’S Observations of 2020 Component Manufacturing Machinery Sales
In addition to its 2021 forecast, SEMI also provided observations regarding the state of component manufacturing machinery sales in 2020.
The organization revealed semiconductor fabrication purchasing dipped by 15 percent in the first quarter from the same timeframe in 2019. The group attributed the slump to the coronavirus outbreak, which delayed both equipment factory output and transportation in Q1. However, the firm noted component production machinery expenditures rose in March as corporations began stockpiling assembly hardware out of concern for future supply chain disruptions.
SEMI acknowledged coronavirus related usage spikes for digital services pushed recent semiconductor production equipment sales, but it also predicted a near-term downturn. The association explained rising worldwide unemployment will hurt consumer spending on new cars and smartphones, which will affect sector-specific chip demand. The firm’s outlook is supported by recent negative 2020 forecasts for the automotive and handset markets.
Given the health crisis’s impact on the world economy, SEMI’s projection of a 2020 downturn for semiconductor machinery is disappointing but not unexpected. That said, its expectation of revival next year, and therefore a probable rise in component production is encouraging.