SEMICON UPDATE 1H 2023 - WHAT TO EXPECT FOR PLASTICS
Those involved in the Semiconductor industry are quite aware of the headwinds that 2023 has presented. The good news is that there seems to be a light at the end of the tunnel. While IC chip revenues are forecasted to decline from highs in 2022 by 11% in 2023, according to Gartner, the industry predicts an 18% increase in chip revenue in 2024.
While IC chip revenue is the key driver in the Semiconductor capital equipment industry, the construction of new fabs and subsequent loading of the fabs with equipment can also drive equipment build levels. In 2022 and 2023 alone, 61 new IC chip fabs have broken ground.
Therefore, as the industry is depressed due to lower chip volumes, the continued construction of new capacity to keep up with the demand required over the next decade will drive equipment sales.
Despite the decrease in IC chip revenues in 2023, the industry is forecasted to expand by 9.18% CAGR through 2028. The continued strong investment in new fabs, coupled with new technologies in 3nm gate sizes plus increases in IC chip volumes, will create a perfect storm of capacity requirements throughout the extended supply chain.
Semiconductor capital equipment, which requires a high content of plastic materials, is projected to return to 2022 levels in 2024 after realizing a 2023 decline of about -22%, according to SEMI. Raw materials are early in the process to build a process tool, thus
the increases in requirements could be as early as the third or
fourth quarter of 2023.
As you prepare for the rebound, make sure you are contacting your local Port Plastics sales office. We are already planning the future for bringing unique value solutions to the entire Semiconductor value chain!
CONTACT PORT PLASTICS FOR ALL YOUR SEMICONDUCTOR RELATED NEEDS!
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