After a 36% increase in 2021, capital expenditures in the semiconductor industry will rise by 24% in 2022, analysts at IC Insights predict. As a result, a new historical maximum of this indicator will be reached. More specifically, analysts expect semiconductor industry capital expenditure to top $190 billion for the first time. If the forecast holds up, this will be the first three-year period in decades where capital investment has risen in double digits each year. The last time such a sequence was recorded was between 1993 and 1995.
With many supply chains overwhelmed or disrupted during the pandemic, the electronics industry has in many cases been left unprepared for the current recovery in demand. Rapidly growing demand has brought the utilization rate of most production facilities well over 90%, with many factories operating at 100% capacity. With such high capacity utilization rates and expectations of continued strong demand, the total capital expenditures of the semiconductor industry in 2021 and 2022 are projected to reach $344.3 billion.
Source: ixbt
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