Market Update: Manufacturing index Manufacturing expansion, Semiconduc- tors: 22 new 200mm fabs in 5 years

Manufacturing continues solid pace in May

The manufacturing industry recorded growth for a full year, with the Institute for Supply Manufacturing’s (ISM) purchasing manufacturers index (PMI) recording 61.2%, which is a half-point higher than April. It is the fourth straight month the index has been over 60 and is the fifth time in six months. The six biggest manufacturing industries recorded strong to moderate growth in May and all but one of the 18 manufacturing industries reported growth.

This has, overall, been a healthy rebound for the industry as a whole after recording a contraction in April 2020 dur-

ing the height of the COVID-19 pandemic. Now, with vaccinations reaching more than half of the United States and ‘This has been a healthy rebound after recording the April 2020 retracdemand reaching new highs, there is great reason for optimism, but also concern for some potential headwinds. While demand is high, the inability to have enough tion during the height of the personnel due to the lack of skilled labor and health concerns COVID-19 pandemic.’ could cause some problems down the road. ce Chris Vavra, web content manager, Control Engineering, CFE Media and Technology, cvavra@cfemedia.com.

Southeast Asia is helping lead a manufacturing expansion

The Southeast Asian economic powerhouse is driven by South Korea, Taiwan, Hong Kong and Singapore. Behind these “Tiger” economies, trot the “Tiger Cubs” – Vietnam, Malaysia, Philippines, Thailand and Indonesia. The Tiger Cubs are so-called because they are following the same ‘ Export-driven growth helps Malaysia, Indomodel of exportdriven growth as their larger neighbors. The Internanesia and Vietnam tional Monetary among smaller SE Fund has made post-COVID GDP growth projections for the Asian Tiger zone, and has pinpointed three of the Cubs as having the healthiAsian countries.’ est prospects in the region, while other countries struggle. These are Malaysia, Indonesia, and Vietnam, who are all expected to see their overall economies expand next year compared with levels prior to the coronavirus outbreak in 2019. Due to their export-led growth model, the Tiger Cubs are of particular interest in the world’s industrial manufacturing supply chain. Manufacturing in all three countries has strong potential as a rival to China, partly due a lower cost base and partly due to rising international trade tensions causing globalized manufacturing firms to reduce their dependence on Chinese factories. ce

- Edited from an Interact Analysis article. Interact Analysis is a CFE Media content partner.

Semiconductor manufacturers expected to boost fab spending

SEMICONDUCTOR manufacturers worldwide are on track to boost 200mm fab capacity by 950,000 wafers, or 17%, from 2020 through 2024 to reach a record high of 6.6 million wafers per month, SEMI announced in its 200mm Fab Outlook Report. 200mm fab equipment spending is expected to reach nearly $4 billion in 2021 after passing the $3 billion mark in 2020 and hovering between $2 billion and $3 billion from 2012 to 2019. The spending increase reflects in part the global semiconductor industry’s push to overcome the current chip shortage with 200mm fab utilization continuing at high levels.

“The 200mm Fab Outlook Report shows that, during the same period, wafer manufacturers will add 22 new 200mm

fabs to help meet growing demand for 5G, automotive

and Internet of Things (IoT) devices that rely on analog, power management and display driver integrated circuits (ICs), MOSFETs, microcontroller units (MCUs) and sensors,” said Ajit Manocha, SEMI president and CEO in a press release.

The SEMI 200mm Fab Outlook Report, covering the 12 years from 2013 to 2024, said foundries will account for more than 50% of fab capacity worldwide this year, followed by analog at 17% and discrete/power at 10%. Regionally, China will lead the world in 200mm capacity with 18% share in 2021, followed by Japan and Taiwan at 16% each. ce - Edited from a SEMI press release by CFE Media. SEMI is a CFE Media content partner.