The electronics industry has seen significant growth in recent years, and with this growth comes the need for increased production and manufacturing of electronic components. One of the key components in the industry is silicon fabrication facilities, commonly known as FABS. These facilities are responsible for the production of the silicon wafers used in the creation of electronic components such as microchips, processors, and sensors. The global market for FABS is a rapidly evolving one, with changing dynamics that affect both demand and supply. the semiconductor industry continues to grow and expand, with an increasing number of fabs processing 300 mm wafers for the production of ICs and non-IC products.

The move towards larger wafer sizes, such as 300 mm, has been driven by the need to increase productivity and reduce costs in the semiconductor manufacturing process. By using larger wafers, manufacturers can produce more chips per wafer, which reduces the cost per chip and increases overall efficiency.

The fact that the number of 300 mm wafer fabs increased by 14 in 2021 is significant and indicates that there is still strong demand for semiconductor products. This growth is likely being driven by a range of factors, including the increasing demand for electronics in various industries, the rise of the internet of things (IoT), and the ongoing development of new technologies such as 5G and artificial intelligence (AI). It will be interesting to see how the semiconductor industry continues to evolve in the coming years and how new technologies and innovations will shape its future.

One of the most significant changes in recent times has been the reduction in reliance on Chinese FABS, as at the end of 2020 15.3% of the world’s capacity. This shift has come about due to the ongoing trade tensions between China and the West especially US companies who are banned from outsourcing manufacturing of equipment due to IP (Intellectual Property) concerns.