IC Insights is forecasting a record increase in semiconductor production in 2021 as production lines capacity are expanded, SemiMedia reports.

“According to forecasts, next year, 10 production lines for 300 mm silicon wafers will be added worldwide. Based on this forecast, by 2024, the average annual growth rate of semiconductor production capacity will be 5.9%. Compared with the average annual increase rate (5.1%) of semiconductor production capacity in the past 5 years (2014 ~ 2019), the growth rate slightly increased,” SemiMedia notes.

IC Insights pointed out “due to the poor industrial conditions this year, the global semiconductor equipment operating rate was only 86%, which was much lower than 94% last year, and the companies delayed the plan. Although semiconductor companies have postponed the expansion plan, it is generally believed that some additional production lines will be completed in 2020 and 2021”.

200mm silicon wafers production should add 17.9 million chips, IC Insights’ analysis forecasts and this will majorly increase the production capacity to nearly 21 million in 2021.

Projected growth in semiconductor manufacturing equipment as predicted by industry association SEMI will contribute to the increase. “Global sales of semiconductor manufacturing equipment by original equipment manufacturers are projected to increase six percent to $63.2 billion in 2020, compared to $59.6 billion in 2019, before logging record high revenue of $70 billion in 2021 on the strength of double-digit growth,” Robotics and Automation News noted.