Driven by AI demand, it is expected to reach a record high of 33.7 million in 2025
🟦 Global semiconductor manufacturing capacity will reach record high in 2025
According to SEMI, global semiconductor manufacturing capacity is projected to reach a record 33.7 million units per month (8-inch equivalent) by 2025. This is due to several factors, including the demand for AI and China’s aggressive investments.
- Growth Rate of Semiconductor Manufacturing Capacity
- 2024: 6% increase
- 2025: 7% increase
🟦Demand for advanced chips and HBM memory soars due to AI demand
The proliferation of AI processing has increased the demand for high-performance chips. That’s why data centers need advanced chips for AI training and inference processing. There is also a growing demand for HBM memory to support high-speed processors.
Chipmakers such as Intel, Samsung, and TSMC are preparing to start production of 2nm GAA chips. Moreover, China is increasing its investments in the domestic semiconductor industry. Chinese foundry suppliers, such as Huahong Group, Nexchip, Sien Integrated, and SMIC, are also investing heavily to expand their production capacity.
🟦Summary
The acceleration of mass production of advanced chips and the expansion of investment in China are projected to increase global semiconductor production capacity by 11% in two years. It is expected to grow by 6% in 2024 and 7% in 2025, reaching a record high monthly production of 33.7 million pieces by 2025.
One of the major drivers of the current semiconductor demand is AI. In the future, AI processing will become more decentralized, and it will be performed not only on servers but also on various terminals such as smartphones and edge devices.
