The race to master the 7 and 5 nm standards contributes to the growth of capital investments
IC Insights has updated its semiconductor industry preliminary report for the current year, which will be available in final form in January 2021.
Contract manufacturing of semiconductor products this year accounted for 34% of all capital investments in the industry
According to analysts, the global capital investment associated with the production of semiconductor products this year will amount to $ 108.1 billion. This is 6% more than in 2019 when capital expenditures amounted to $ 102.5 billion. By the way, the 2019 figure was 3% less than the 2018 figure of $ 106.1 billion. In turn, in 2018, capital investment growth was recorded by 11%.
IC Insights estimates that the largest investment this year is in the contract manufacturing segment. More precisely, this is $ 36.3 billion, or 34% of the total. Especially a lot of money has been spent on the development of contract manufacturing for several years. This segment was the largest last year, as well as in 2014, 2015, and 2016. According to analysts, the race to master the 7 and 5 nm norms contributes to the growth of capital investments. The contract manufacturing segment is expected to show the largest increase in capital expenditures this year – 38%.
The next largest spending in 2020 will be the flash and DRAM segments. Investments in the production of these types of products are estimated at $ 22.7 billion and $ 16.6 billion, respectively. A more complete picture of the distribution of capital investments by segments in recent years is given by the table:
