33 new fabs started construction in 2022; 28 planned for 2023 (2024)

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33 new fabs started construction in 2022; 28 planned for 2023? ›

Number of new semiconductor facilities starting construction worldwide from 2019-2023. The projected number of new semiconductor facilities starting construction in 2023 was estimated to stand at 28, slightly down from the 33 new semiconductor facilities that were expected in 2022.

Throughout the U.S., there are 73 new semiconductor fabrication facilities that are planned for construction or are currently under construction, either as expansions of existing facilities or as brand-new facilities.

A look at the map of major semiconductor manufacturing projects in the U.S. as of early 2024 shows that other than Intel's twin locations near Phoenix, Samsung is scheduled to open a facility on the outskirts of Austin, Texas, this year still.

Typical construction timelines for semiconductor manufacturing facilities are 3-5 years from groundbreaking, depending on a range of factors.” It went on to say: “We remain fully committed to the project and are continuing to make progress on the construction of the factory and supporting facilities this year.

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.

Intel announced plans to spend $20 billion on two new chip factories at its Ocotillo campus in Chandler, Arizona. Groundbreaking at the site took place in 2021, with full operations expected in 2024. With the addition of the two new factories, the Ocotillo campus will house a total of six fabrication facilities.

In a historic announcement, in May 2020, TSMC shared its plans to invest $12B in Phoenix, Arizona – building an advanced semiconductor manufacturing fabrication. In December 2022, the company announced its commitment to build a second fab in Phoenix, increasing its total investment to $40B.

TSMC, or Taiwan Semiconductor Manufacturing Company, is the world's largest and most advanced contract chip manufacturer.

Semiconductor Manufacturing International Corporation (SMIC)

It is the largest contract chip maker in mainland China and 5th largest globally, with a market share of 5.3% in the second quarter of 2021. SMIC is headquartered in Shanghai and incorporated in the Cayman Islands.

The site was part of a 3,500-acre zoning case in 2020, which created what the city calls the “Sonoran Oasis Science and Technology Park.” TSMC's campus was also part of the 3,500 acres, it bought 1,128 acres there in late 2020.

How much does a new fab cost? ›

Typically, constructing a new semiconductor fab involves significant investments ranging from several hundred million dollars to several billion dollars. Some estimates suggest that the cost of building a cutting-edge semiconductor fab can range from $5 billion to $15 billion or even higher.

In addition to its new plants in Arizona, Intel has also begun construction on two semiconductor fabs just outside of Columbus, Ohio. The factories, which are estimated to cost around $20 billion, will produce 10 nm chips on 12 inch wafers.

Is the semiconductor crisis finally over? Some chip shortages could remain through 2023 and into 2024, though supply of semiconductors and raw materials will generally improve in the auto sector.

It's about 30 percent more expensive with no government support to build a chip factory in the U.S. as it is abroad because of the subsidies and other factors. So they're trying to basically even it out, so if you're Intel, it's essentially neutral as to where you build your plant.

As of March 4, 2024, Nvidia was the largest semiconductor company of United States origin in terms of market capitalization, amounting to 2.12 trillion U.S. dollars. Broadcom ranked second with a market cap of 659.4 billion U.S. dollars, followed by the likes of AMD, Intel, and Qualcomm.

Chip giant Taiwan Semiconductor Manufacturing Company (TSMC) is upping its output in Japan as it continues to expand its global presence. The world's largest chipmaker will build a second semiconductor fabrication plant, or fab, in the country in “response to rising customer demand,” TSMC said in a statement Tuesday.

In September 2021, Intel broke ground on two more semiconductor fabs, dubbed Fab 52 and Fab 62, on its Ocotillo campus in the Chandler area (upon their completion, Intel will have six factories on the campus). These factories are slated to produce 7 nm semiconductors using the company's 20A fabrication technology.

Progress So Far: Intel is investing more than $32 billion to build two new leading-edge chip factories and to modernize an existing fab at its Ocotillo campus in Chandler, Arizona, where it will produce some of the world's most advanced logic chips.

Driven by serious government funding, China is predicted to lead the world in expanding semiconductor production, with a total of 18 new fabs expected to begin production in 2024. The rather substantial 6.4% increase in wafer processing capacity follows a 5.5% rise to 29.6 million WSPM in 2023.