
Due to the increasing demand for generative artificial intelligence (AI) applications, global semiconductor suppliers are accelerating their expansion. The International Semiconductor Industry Association (SEMI) estimates that the monthly production capacity of global semiconductor manufacturing industry in 2028 will reach 11.1 million pieces, a record high, with a complex synthesis rate of 7% from 2024 to 2028.
SEMI released a 12-inch wafer round factory outlook report, pointing out that the global semiconductor manufacturing industry will maintain a strong growth trend, among which advanced processes of 7 nanometers and below will be the main driving force, and the monthly production capacity will increase from 850,000 tablets in 2024 to 1.4 million tablets in 2028, with an annual synthesis rate of 14%, twice the average semiconductor industry level.
(Source:SEMI)
SEMI said that the rapid popularity of AI applications has stimulated the development of strong investment in the entire semiconductor industry. The semiconductor industry not only promotes technological innovation, but also meets the growing demand for advanced chips.
In order to support larger-scale AI models, training capabilities are becoming increasingly demanding, SEMI pointed out that AI reasoning is also an important growth force. In addition, AI has made breakthroughs in the fields of virtual reality, expanded reality equipment and humanoid robots, and will maintain a strong demand for advanced semiconductor technology in the next few years.
SEMI said that investment in semiconductors is mainly locked in advanced process technology, and the expected capital expenditure of advanced process equipment will climb from US$26 billion in 2024 to over US$50 billion in 2028, with an annual composite synthesis rate of 18%.
SEMI pointed out that the advancement of semiconductor advanced process technology will continue to accelerate, 2 nanometers will be mass-produced in 2026 and 1.4 nanometers will be commercially deployed in 2028. Investment in wafer-machinery equipment for 2 nanometers and below will increase significantly, with an estimated US$19 billion in 2024 and is expected to further double to US$43 billion in 2028.