Shulou(Shulou.com)11/24 Report--

CTOnews.com, Nov. 24 (Xinhua)-- rising inflation and a weak global economy have forced many chipmakers to scale back their aggressive expansion plans when demand for chips exceeds supply. Still, even as capital expenditure (CapEx) in the semiconductor industry fell, IC Insights had forecast that capital expenditure would rise 19 per cent year-on-year to a record high of $181.7 billion in 2022.

But now that companies such as intel and Micron are reviewing their capital spending plans for 2023, IC Insights has revised its forecast that spending in the industry will fall 19% to $146.6 billion in 2023. IC Insights noted that the 19 per cent year-on-year decline in capital expenditure was the biggest drop since the global financial crisis of 2008-2009.

In addition, IC Insights believes that the memory industry will be more affected than the logic industry because major manufacturers will reduce capital expenditure by 25 per cent.

However, almost all chipmakers, including logic and memory chips, expect demand for their products to rebound in 2024-2025. As a result, they think they need to expand capacity to meet demand in the decade. As a result, capital expenditure for new factories will increase significantly between 2024 and 2025.

CTOnews.com learned that fabs already under construction or equipment, including those of Intel, Micron, Samsung, TSMC and Texas Instruments in the United States, will be launched on time because of the high cost of delaying these projects.

Interestingly, IC Insights believes that funding for US semiconductor suppliers as part of the US CHIPS and Science Act will not significantly boost their spending in 2023, as they will replace their own investment in new plants with upcoming grants.

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