Latest News- Semiconductor Capital Spending Market in US: Automotive is expected to lead the End-user segment during 2025-2029

The Semiconductor Capital Spending Market in US is being driven by Growing investments in fabs

The Semiconductor Capital Spending Market in US is expected to grow at a CAGR of 5.4% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 11366.5 million. The semiconductor sector in the US has undergone notable transformations in wafer size over the past five decades. To optimize costs by approximately 20%-25%, the industry has transitioned to larger diameter wafers, predominantly 300-mm wafers, for IC manufacturing. This trend is anticipated to persist, with corporations allocating substantial capital expenditures towards the establishment and enhancement of such fabrication plants. For instance, in April 2024, Taiwan Semiconductor Manufacturing Company (TSMC) disclosed plans to construct a third facility in Phoenix, Arizona, as part of a broader USD65 billion investment – the largest foreign direct investment in Arizona's history. 

Get more information on Semiconductor Capital Spending Market in US by requesting a sample report

Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• End-user
  • Automotive
  • Consumer electronics
  • Telecommunication
  • Others
• Application
  • Wafer fab equipment
  • Automated test equipment
  • Wafer-level packaging and assembly equipment
  • Die-level packaging and assembly equipment
  • Others
• Geography
  • US

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Growing investments in fabs
• Surge in demand for consumer electronics and smart electronic devices
• Miniaturization of electronic devices

However, the market also witnesses some limitations, which are as follows:

• High dependence on a limited number of key suppliers
• High-investment market
• Cyclic nature of semiconductor industry

Benefits of Buying Global Semiconductor Capital Spending Market in US Research Report by Technavio

Rich Experience: 20+ years leading global market research, trusted insights across industries.

Unlock Business Potential with Technavio: Maximize ROI with Technavio's tailored market research: deep dives and actionable insights.

Your Guide to Market Success: Empower your business with Technavio's market research and future-proof your decisions.

Market Scope in Semiconductor Capital Spending Market in US Research Report

Request Free Sample

Find out which segment is leading the market by accessing the free PDF report

Research Analysis Overview

The Semiconductor Capital Spending Market in the US is influenced by various factors such as increasing chip demand, inflation, monetary tightening, and the ongoing war in Ukraine. Chipmakers like Micron and Intel face supply and capacity challenges, leading to inventory buildup. Memory spending is a significant focus, with investments in tool and facility manufacturing processes and yields. The industry's strategic importance drives competition, subsidies, and investment tax incentives. Timely execution is crucial, with consumer electronics, generative AI, and factories driving device demand. Semiconductor firms invest in nodes and logic chips, navigating competition and manufacturing equipment needs.

Market Research Overview

The semiconductor capital spending market in the US is driven by various factors influencing the global semiconductor industry. These factors include increasing chip demand, inflation, monetary tightening, and geopolitical tensions, such as the war in Ukraine. Vendors in this market, which encompasses semiconductor manufacturers producing ICs like memory, logic, and discrete components, are witnessing significant investments in constructing new and expanding existing fabs. This trend is attributed to the growing need for advanced semiconductor technology in various end-use industries. Despite challenges from inflation and monetary tightening, memory spending is expected to remain robust due to the continuous expansion of data centers and the increasing adoption of IoT devices. Overall, the semiconductor market is poised for growth, with IDMs, fabless companies, and OEMs/ODMs contributing to the demand for semiconductor ICs.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/