In the last year there’s been a big push to build more new semiconductor fabrication plants, especially in the United States and Europe. The reasons for this include:
- Geopolitical concerns around trade tensions with China
- The adoption of new legislation supporting domestic semiconductor development*
- Pains around semiconductor shortages felt during COVID-19
*Legislation includes the U.S. CHIPS Act in 2022, which directs nearly $53 billion to “American semiconductor research, development, manufacturing, and workforce development” as well as the European Chips Act, which earmarks 43 billion euros (around $47 billion) to build the semiconductor industry in the 27 member states, with the express aim of doubling their global market share from 10% to 20% by 2030.
But the West isn’t the only one getting in on the semiconductor renaissance. In fact, the whole world is in a race to build more new semiconductor fabrication plants to keep up with growing technology demand. But what do we know about this global building frenzy? And what can we take away from it?
Here’s a breakdown of useful statistics on the global state of new semiconductor fabrication plants:
1.How Many Semiconductor Fab Plants Are Being Built?
There are currently 73 new semiconductor fabs being built around the world, according to Z2Data’s data analysis. This total count includes those that are completely new fabrication sites and those that are expansions on existing sites.
The total estimate does not include any semiconductor fabs whose construction has been canceled, suspended. It also looks exclusively at fabs that have a confirmed construction site.
Read also: What Should a Good Risk Analysis of Semiconductor Suppliers Include?
2. How Many New Semiconductor Fabs vs. Expansions?
Of the 73 new semiconductor fabs being built, 23 (31%) are expansions on existing fabrication sites. Most of these fab expansions will focus on producing 28nm technology nodes, with capacity varying between locations. A few, however, will focus on more advanced technology, including:
- Owner: Samsung Foundry
Fab Location: South Korea
Completion Date: 2023 (Expansion)
Tech Nodes: 4nm
Expected Capacity: 30,000/month - Owner: Samsung Foundry
Fab Location: South Korea
Completion Date: 2023 (Expansion)
Tech Nodes: 5nm - Owner: TSMC
Fab Location: United States
Completion Date: 2025
Tech Nodes: 4nm & 5nm - Owner: Intel Corp.
Fab Location: Ireland
Completion Date: 2023 (Expansion)
Tech Nodes: 7nm
The other 50 fabs will be brand new semiconductor fabrication plants. Twenty-one (42%) of those will be built in the United States, with Arizona and Texas being hotspots for new production. Samsung Foundry has been especially heavy in its investment; the chipmaker has 10 fabs planned for Texas, all of which will be completed between 2023 and 2042.
3. Where Are Most of These Semiconductor Fabs Being Built?
While news outlets focus heavily on new semiconductor fabrication plants being built in the United States and Europe, the push for more semiconductor fabs has not been lost on the rest of the world. Thirty-eight of the semiconductor fabs being built are located in East and Southeast Asia, most notably China, Taiwan, South Korea, and Japan. That’s just over half of the total new planned fabrication plants around the globe.
Out of the 35 fabs being built in the West, 27 (77%) are being built in the United States. This number accounts for both expansions and new semiconductor fabs.
4. What Are Their Timelines for Completion?
Z2Data’s analysis tracks semiconductor fabs whose initial construction dates range between 2019 and 2025. Of those, 53 (76%) are expected to be completed in the next four years. However, these completion dates are early estimates, and real-world circ*mstances may impact their actual launch dates. For example, TSMC’s Fab 21 in Arizona was initially slated to open in 2024, but difficulties finding skilled workers (among other challenges) has pushed that timeline back to 2025.
5. Who Is Building Most of the New Semiconductor Fabs?
There’s a wide range of companies getting in on the semiconductor fab renaissance, but the biggest players are Intel Corporation, Micron Technology, Samsung Foundry, Semiconductor Manufacturing International Corporation, and Taiwan Semiconductor Manufacturing Co.
6. What Are Their Most Common Technology Nodes?
Not every new semiconductor fab site has made their technology node information public. But of those who have, the most common nodes for development will be:
- 28nm
- 10nm
- 22nm
- 40nm
28nm technology first appeared on the market in 2009 and grew in popularity after TSMC introduced the first 28nm General Purpose process technology in 2011. Since its adoption, the 28nm has come to support a wide array of applications, including “Central Processing Units (CPUs), graphic processors (GPUs), high-speed networking chips, smart phones, application processors (APs), tablets, home entertainment, consumer electronics, automotive, and the Internet of Things.” While the 28nm no longer holds the crown for cutting edge technology (12 years later, Apple’s iPhone 14 uses 4nm process technology), it remains a popular choice for product manufacturers–and as evidenced by the continued production of new 28nm fabrication plants, will remain supported for some time.
7. Where Are the Most Advanced Nodes Being Built?
If we consider anything 10nm or smaller to be advanced, here are the planned node sizes for some of the upcoming semiconductor fabs:
- 7nm
- 5nm
- 3nm
- 2nm
- 1nm
It comes as no surprise that Samsung Foundry and TSMC continue to lead the charge towards 1-5nm technology, although Japan-based Rapidus Corporation also has plans for 1nm and 2nm fabs.
Here is a geographic breakdown of where these advanced fabs are being built:
While East Asia continues to hold the geographical crown for advanced semiconductor development, four semiconductor fabs in the United States could start to disperse where new technology is born. TSMC’s Fab 21 in Arizona is dedicated to producing 4nm and 5nm technology, while Samsung’s first Taylor, Texas semiconductor fab is currently slated to start chip production in 2024. (The fab has also already secured its first customer for its 4nm process technology.)
Intel is also building two American fabs of its own, one in Arizona and another in Ohio, which will focus on producing 10nm and 7nm chips, respectively. It also has another two advanced semiconductor fabs being built in Ireland and Germany. The Irish plant–an expansion of an existing fab–will produce 7nm. The German fab, which will be located in Magdeburg, is set to produce 10nm technology.
8. What Capacity Will These New Semiconductor Fabs Have?
Most semiconductor fabs have not yet released their expected capacity, but there are several that have released projected figures. Here are the new semiconductor fabs that have publicly shared that information, in addition to their planned technology nodes:
- Owner: Foxconn Interconnect Technology Ltd.
Fab Location: India
Completion Date: 2025
Tech Nodes: 28nm
Expected Capacity: 40,000/month - Owner: Foxconn Interconnect Technology Ltd.
Fab Location: Malaysia
Completion Date: 2025
Tech Nodes: 28nm & 40nm
Expected Capacity: 40,000/month - Owner: Guangzhou CanSemi Technology Inc.
Fab Location: China
Completion Date: 2025
Tech Nodes: 22nm & 40nm & 55nm
Expected Capacity: 120,000/month - Owner: Hua Hong Semiconductor Ltd.
Fab Location: China
Completion Date: 2026
Tech Nodes: 40nm & 55nm & 65nm
Expected Capacity: 83,000 - Owner: Nanya Technology Corp.
Fab Location: Taiwan
Completion Date: 2025
Tech Nodes: 10nm
Expected Capacity: 45,000/month - Owner: Powerchip Semiconductor Manufacturing Corp.
Fab Location: Taiwan
Completion Date: 2023
Tech Nodes: 10nm & 50nm
Expected Capacity: 100,000/month - Owner: Samsung Foundry
Fab Location: South Korea
Completion Date: 2023
Tech Nodes: 4nm
Expected Capacity: 30,000/month - Owner: Semiconductor Manufacturing International Corp.
Fab Location: China
Completion Date: 2024
Tech Nodes: 28nm
Expected Capacity: 100,000/month - Owner: Semiconductor Manufacturing International Corp.
Fab Location: China
Completion Date: 2024
Tech Nodes: 28nm
Expected Capacity: 100,000/month - Owner: Semiconductor Manufacturing International Corp.
Fab Location: China
Completion Date: 2025
Tech Nodes: 28nm
Expected Capacity: 100,000/month - Owner: Semiconductor Manufacturing International Corp.
Fab Location: China
Completion Date: 2025
Tech Nodes: 28nm
Expected Capacity: 40,000/month - Owner: TSMC
Fab Location: United States
Completion Date: 2024
Tech Nodes: 4nm & 5nm
Expected Capacity: 20,000/month - Owner: TSMC
Fab Location: Japan
Completion Date: 2024
Tech Nodes: 12nm & 16 nm & 22nm & 28nm
Expected Capacity: 55,000/month - Owner: Tower Semiconductor Ltd.
Fab Location: India
Completion Date: 2028
Tech Nodes: 65nm
Expected Capacity: 40,000/month - Owner: United Microelectronic Corp.
Fab Location: Singapore
Completion Date: 2024
Tech Nodes: 22nm & 28nm
Expected Capacity: 30,000/month - Owner: Winbond Electronics Corp.
Fab Location: Taiwan
Completion Date: TBD
Tech Nodes: 20nm
Expected Capacity: 10,000/month
9. Notable Collaborations in Semiconductor Fab Technology
There are two interesting collaborations worth taking note of as part of understanding the semiconductor manufacturing landscape. The first is TSMC’s partnership with Robert Bosch GmbH, NXP Semiconductors, and Infineon Technologies to produce a new semiconductor plant in Germany by 2027. Investment in the new fab is expected to exceed 10 billion euros ($10.97 billion), and has received backing from both the German and European Union. Given Bosch, NXP, and Infineon’s focus on the automotive industry, it is probable that this new semiconductor fab will serve automotive products almost exclusively.
Another automotive-focused collaboration will be between TSMC, Denso Corp., and Sony Semiconductor Solutions Corp. The semiconductor plant will be located in Southern Japan and is expected to produce up to 55,000 wafers each month at a total cost of $8.6 billion. This is up from an initial estimate of 45,000 wafers per month. The increased investment follows a bad global chip shortage for automakers combined with concerns over increasing trade tensions between China and the United States.
10. Get Even More Insights With Z2Data’s Original Analysis
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If you’d like to learn more about upcoming semiconductor fab projects, or you want to explore how to effectively de-risk your supply chain, sign up for a free trial of Z2Data.
