Semiconductor Plant Construction Market - By Construction (New Construction, Expansion, Renovation), By Facility (Wafer Fabrication Facilities, Assembly & Test Facilities, Research & Development Facilities), By Equipment, By Infrastructure, Forecast 2024 – 2032

Semiconductor Plant Construction Market Size

Semiconductor Plant Construction Market size was valued at USD 39.3 Bn in 2023 and is estimated to grow at a CAGR of over 8.3% between 2024 and 2032. The growth of consumer electronics and the electrification of the automotive industry are major drivers for the construction of semiconductor plants.
 

The consumer electronics market is expanding with the introduction of new gadgets, smart home devices, and wearable technology, all of which require advanced semiconductors. Simultaneously, the automotive industry is transforming with the shift towards electric vehicles (EVs) and autonomous driving technologies. For instance, according to the International Energy Agency, in December 2023, global EV sales totaled approximately 14 million. These vehicles depend heavily on semiconductors for battery management systems, sensors, infotainment systems, and advanced driver-assistance systems (ADAS). Hence, the increasing demand for these sophisticated electronic components necessitates the establishment of new semiconductor manufacturing plants to supply the automotive and consumer electronics industries with high-performance chips.
 

Governments worldwide are increasingly recognizing the strategic importance of semiconductor manufacturing and are offering substantial incentives to enhance domestic production. Initiatives such as the U.S. Creating Helpful Incentives to Produce Semiconductors (CHIPS) Act, along with similar programs in the European Union and Asia, aim to strengthen local semiconductor ecosystems. These incentives include financial support, tax breaks, grants, and subsidies for companies investing in semiconductor manufacturing infrastructure. Additionally, national security concerns drive government support, as countries seek to reduce dependence on foreign semiconductor suppliers.
 

Constructing semiconductor plants necessitates advanced technology and precision. Cleanrooms, where semiconductors are manufactured, must maintain exceptionally low levels of dust and contaminants, requiring sophisticated engineering and continuous monitoring. The integration of high-tech equipment, such as photolithography machines, demands meticulous planning and accuracy. Ensuring compatibility and precise operation of all manufacturing components presents a significant challenge. Furthermore, the rapid technological advancements in the semiconductor industry require plants to be designed with flexibility for future upgrades, adding to the complexity of the construction process.
 

Semiconductor Plant Construction Market Trends

The semiconductor industry is increasingly focusing on smaller, more powerful nodes, including advanced technologies like 5nm, 3nm, and the upcoming 2nm nodes. Governments in developed regions are increasingly collaborating with chip manufacturers to enhance the construction of efficient nodes. For instance, in April 2024, TSMC signed a Memorandum of Understanding (MoU) with the U.S. Department of Commerce, securing USD 6.6 billion in direct funding under the CHIPS Act.
 

Manufacturing these nodes requires state-of-the-art facilities equipped with the latest photolithography, etching, and deposition equipment. This trend is driven by the growing demand for high-performance computing in areas such as artificial intelligence, machine learning, and data centers, as well as the evolving needs of next-generation consumer electronics and automotive technologies. Establishing plants capable of producing these advanced nodes necessitates significant investments in both technology and infrastructure. Additionally, companies are developing new materials and innovative manufacturing techniques, leading to continuous upgrades and expansions of existing facilities.
 

Semiconductor Plant Construction Market Analysis

Based on construction, the market is segmented into new construction, expansion, and renovation. The new construction segment is expected to grow at a CAGR of over 9.1% between 2024 and 2032. Technological advancements are driving new construction projects in the semiconductor manufacturing sector. As semiconductor technology evolves, the industry requires state-of-the-art facilities to support new processes and equipment. The shift towards smaller process nodes, such as 5nm and 3nm, necessitates advanced cleanroom environments and precision manufacturing tools.
 

Facilities are integrating cutting-edge technologies like extreme ultraviolet (EUV) lithography, which demands specialized construction to accommodate this equipment and ensure optimal operational conditions. Additionally, the adoption of advanced semiconductor materials, including silicon carbide (SiC) and gallium nitride (GaN), requires new facilities designed to handle these materials and their unique processing needs. This ongoing evolution compels semiconductor companies to invest in new construction to maintain technological leadership, achieve higher performance, and meet the increasing demand for more powerful and efficient semiconductor devices.
 

Based on facility, the semiconductor plant construction market is segmented into wafer fabrication facilities, assembly & test facilities, and research and development facilities. The wafer fabrication facilities segment held a market share of 65 % in 2023. The expansion of wafer fabrication facilities is driven by the increasing demand for high-performance computing (HPC) and data centers. The surge in data-intensive applications, cloud computing, and artificial intelligence necessitates advanced semiconductor components capable of handling complex computations and large-scale data processing.
 

This demand fuels the need for specialized high-performance chips, such as processors and memory modules, which require sophisticated fabrication techniques. As data centers expand globally to support these applications, semiconductor companies must invest in new and upgraded wafer fabrication facilities to meet the growing need for high-performance and energy-efficient chips. Additionally, the demand for faster processing speeds, higher bandwidth, and improved energy efficiency in computing and storage systems further accelerates this growth.
 

In the U.S., the semiconductor plant construction market is influenced by strategic, economic, and policy factors. The U.S. government has introduced initiatives such as the CHIPS Act to promote domestic semiconductor manufacturing by offering financial incentives, grants, and tax breaks. These measures address supply chain vulnerabilities and national security concerns, emphasizing the need for domestic production capabilities to reduce reliance on foreign sources. Additionally, the growing demand for advanced technologies in consumer electronics, automotive, and data centers drives the need for state-of-the-art semiconductor manufacturing plants.
 

Taiwan held a dominant share of over 45% in 2023. Taiwan's dominance in semiconductor manufacturing, led by firms like Taiwan Semiconductor Manufacturing Company (TSMC), drives the construction of new semiconductor plants. The island's strategic focus on high-tech industries has created an advanced semiconductor ecosystem, supported by strong infrastructure, skilled labor, and substantial government backing. To maintain its competitive edge, the Taiwanese government has introduced policies, including tax incentives and subsidies, to enhance domestic semiconductor production.
 

In China, the expansion of semiconductor manufacturing facilities is driven by a strategic goal of achieving self-sufficiency in semiconductor technology. The Chinese government has launched initiatives such as the "Made in China 2025" plan and invested heavily in domestic companies like SMIC (Semiconductor Manufacturing International Corporation). These policies, which include significant subsidies, tax incentives, and funding, aim to build advanced fabs and reduce dependence on foreign technology. The increasing demand for consumer electronics, automotive components, and industrial applications in China further fuels this expansion.
 

Semiconductor Plant Construction Market Share

Samsung Electronics and Exyte together hold 11% of the market share in 2023. Samsung, recognized for its vertical integration, manages the entire semiconductor supply chain from design to manufacturing. This strategy ensures Samsung maintains high standards of quality and innovation in its semiconductor products. Additionally, Samsung consistently invests in advanced technologies, such as 5nm and 3nm node processes. This commitment to technological leadership drives the development of new, state-of-the-art fabrication facilities to support its R&D and manufacturing operations.
 

Exyte excels in constructing high-tech facilities, particularly cleanrooms essential for semiconductor manufacturing. Their expertise in creating controlled environments ensures semiconductor production meets stringent quality and safety standards. Exyte customizes its construction solutions to meet the specific requirements of semiconductor manufacturers, offering bespoke designs and construction methods to accommodate advanced semiconductor processes and technologies.
 

Semiconductor Plant Construction Market Companies

Major players operating in the market are:

• Samsung Electronics
• Fluor Corporation
• Bechtel Corporation
• Toyo Engineering
• Turer Engineering Company
• Exyte (M+W Group)
• Jacobs Engineering
   

Semiconductor Plant Construction Industry News

• In April 2024, Exyte Technologies expanded its capabilities by acquiring Kinetics Group, enhancing its expertise in semiconductor, biopharma, and battery plant construction. This acquisition also introduced technical facility management services, enabling Exyte to offer comprehensive support to clients from construction through to operational phases.
   
• In November 2022, Bechtel announced plans to construct Intel's new semiconductor manufacturing facility in New Albany, Ohio. Bechtel has completed Phase 1 of the Intel Ohio project, which includes a 2.5 million square foot facility with 600 thousand square feet of cleanrooms.
   

The semiconductor plant construction market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Million) from 2021 to 2032, for the following segments:

Click here to Buy Section of this Report

Market, By Construction, 2021 – 2032

• New construction
• Expansion
• Renovation

Market, By Facility, 2021 – 2032

• Wafer fabrication facilities
• Assembly & test facilities
• Research & development facilities

Market, By Equipment, 2021 – 2032

• Lithography
• Deposition
• Etching
• Chemical mechanical planarization
• Cleaning
• Others

Market, By Infrastructure, 2021 – 2032

• Electrical infrastructure
  • Uninterruptable power supply (UPS)
  • Power distribution units
  • Backup generators
  • Others
• Mechanical infrastructure
  • Cooling systems
  • HVAC systems
  • Water treatment systems
  • Gas distribution systems
  • Vacuum & abatement systems
  • Others
• Networking infrastructure
• Safety & security systems
  • Fire suppression systems
  • Security & surveillance systems
  • Others
• Others

The above information is provided for the following regions and countries:

• Existing Market
  • U.S.
  • Canada
  • China
  • Taiwan
  • Japan
  • South Korea
  • Malaysia
  • Singapore
  • Germany
  • UK
  • Netherlands
  • Israel
• Opportunity Market
  • India
  • Vietnam
  • Thailand
  • Philippines
  • Brazil
  • Rest of the World