Global Capacity Growth

• Overall growth forecast: Global chip factory production capacity is expected to increase by 6% this year, 7% in 2025, and reach a historic high of 33.7 million chips per month by 2025.
• Advanced process growth: The production capacity of top chips with 5nm and below is expected to increase by 13% this year, mainly driven by the demand for generative AI. Next year, with the production of 2nm GAA chips, the total top production capacity is expected to increase by 17%.

Regional contributions

• China's dominant position: The production capacity of Chinese chip factories has increased by 14% this year, reaching 8.85 million chips per month. It is expected to increase by 15% by 2025, reaching 10.1 million chips per month, accounting for one-third of global production capacity.
• Main corporate investments: Companies such as Huahong, SMIC, and CXMT have made significant investments in China to enhance production capacity.

Semiconductor OEM

• Capacity expansion: Driven by Intel and Chinese companies, the logic semiconductor foundry capacity will increase by 10% and 11% respectively from 2024 to 2025, and can reach a monthly production of 12.7 million chips by 2026.

Market drivers

• AI and high-performance chips: The surge in demand for AI processing has triggered a competition for high-performance chip research and development, driving strong expansion of global semiconductor manufacturing capacity.
• Application scenario: From cloud computing to edge devices, AI demand has become the main driving force, prompting chip manufacturers to actively increase production capacity.