in the last two years in the past two years, the past two years, wafer production market has grown significantly because of the high demand for high-end processors in data and network centers, smartphones with 5G, and other applications that are growing rapidly like robotics, autopilot, AI, and other high-growth apps.

IC Insights report predicts that the total sales of the wafer manufacturing industry in 2021 will be above 100 billion dollars US 100 billion thresholds for the very first time in history, at the US $107.2 billion which is a rise of 23% as well as continuing to increase by an average rate per year of 11.6 percent. Total sales are expected to exceed US $151.2 billion by 2025.

As per SEMI Global semiconductor producers will construct 29 new factories between 2021 and 2022. Of 19, 19 of which will be constructed at 2021's end and 10 more by 2022 to meet the ever-growing demands for chip production.

As illustrated in the figure in the figure, looking from the perspective of regional distribution China and Taiwan will dominate the distribution of regional resources. China along with Taiwan will lead in the building of new plants. There will be eight each, followed by six in America as well as 3 in Europe and the Middle East, 2 in Japan, and two located in South Korea. Of the new plants, 300mm (12-inch) plants will comprise 15 of them in 2021 and seven in 2022. 

Once all 29 facilities are complete and in production, the plants can produce upwards of 2.6 million wafers (equivalent to 8 inches) every month.

Based on the type of facility of category, all 29 of them are factories that produce wafers, with the capacity to produce 30 000 - 220000 wafers (equivalent 8 inches) and 4 are storage facilities with the capacity of between 100000 and 400000 wafers (equivalent 8 inches).

While overall capacity is increasing, the rate of expansion in capacity differs for different dimensions of wafers. As for proportion, 12 inches were the largest on the list with 8 inches accounting for just 4% of the total in 2020. It increased to 6% in the year ahead because of the absence of a core. This is expected to continue until 2022.

In actuality, the primary deficiencies this year-analog IC power management IC display driver IC and power components MOSFET MCU sensors, and the analog ICs are predominantly focused on the capacity of 8 inches and revealing the absence of capacity. Because the greater return on the investment in twelve-inch wafer manufacturing line capacity to produce 8 inches by manufacturing facilities has been reduced in recent years. as per the latest statistics, it is unlikely that this will be significantly altered by this year's shortage. According to the SIA forecast that the world's 8-inch wafer production capacity will increase by just 17% between 2020 and 2024.

In contrast to the slow expansion of the foundry capacity of 8 inches 12 inches capacity expansion is extremely active and the annual compound growth rate is projected to be higher than 8 percent in 2022.

Since 2019, the utilization of capacity in fabs with 8-inch and 12-inch dimensions across the globe has increased, reaching 90% by 2020. 

While all regions in the globe are growing production, there are noticeable variations in the process of manufacturing. 

Despite the shortage of chips, chip suppliers have entered into contracts with contract manufacturers for several years, revenues of contract manufacturing companies increased by 22.6 percent to reach $95 billion by 2021. It will increase by 11.9 percent by 2022, however, the global capacity utilization will decrease. Gartner estimates that the rise in capital expenditure will cause a worldwide surplus of wafer capacity between 2024 and 2025. In addition, the utilization of factories will fall to less than 80 percent. A significant portion of this capacity growth stems from the growth of the fab. It requires a minimum of two years from the beginning of operations to produce in mass.

Fabs make up 35% of semiconductor capital expenditures in 2021, which is the highest position. Foundry is the most of semiconductor capital expenditures every calendar year starting in 2014 with only two exceptions: capital expenditure on flash memory and DRAM was up in 2017 and the year 2018. Due to the growing demand for chips produced by the most advanced technology nodes in the market for applications and the need to invest in wafer manufacturing factories is now a necessity.

For many businesses, the increase in expenditure will continue to grow until 2022. TSMC's capital investment, as an example, was $30 billion in 2021, which is an increase of 74 percent from 2020. 

Similar to the year 2021 Samsung has spent around 30 billion on semiconductor capital. Samsung has announced its plans to spend 240 trillion won ($210 billion) in 3 years to grow its business. 

Post-Moore's Law effect makes more demanding expectations for chip performance. In addition to materials, the latest manufacturing processes and packaging techniques have a major impact and, therefore, it does not just pose challenges to semiconductor manufacturing, but also provides opportunities for companies in the related industries.

In the same way that semiconductor manufacturing has become the key strategic element of competitiveness's core aspects for the ever-changing battle with China and the United States in the last 2 years, policies that policymakers have formulated by both governments have specific incentives that encourage the investment of domestic producers. to fill in the gaps that are strategic and to reduce risk to supply chains.