Customers Are Clamoring for More Capacity

Andrea Lati
Andrea Lati
The Chip Insider®
  • Order activity for semiconductor equipment continued to heat up, jumping past 114 degrees
  • SOC Computing and Memory added another point, hitting fresh new highs for the year
  • With the backlog at an all-time-high, Equipment manufacturers feel very optimistic about the year and expect 2022 to be another double-digit growth year
  • Equipment suppliers are adding capacity in order to meet demand, which continues to exceed supply
  • Supply chain constraints remain a lingering issue for equipment manufacturers and are likely to impact tool shipments again in Q1
  • We expect these constraints to abate, freeing up the tool shipments in the coming quarters
  • TSMC gave the super cycle another boost after announcing a 40%+ increase in CapEx
    • TSM's increase boosted our projected CapEx for 2022 from +15% to +20%, a whopping $176B
  • There were no changes made to the forecasts in January as most of the data came within our expectations
  • VLSI's Chip Price Performance continued to rise
    • DRAM increased
    • NAND flat
    • MPUs flat
  • Semiconductor inventories have been on a seasonal decline, but remain well above last year's levels

Customers Are Clamoring for More Capacity

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