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46 SMT007 MAGAZINE I JANUARY 2023 ages could hamper shipments. TrendForce expects global server shipments to increase in the second half of the year. Analysts expect the most problematic semi- conductor shortages will end in 2022, although UMC and Intel do not see an end until 2023. Semiconductors used for the automotive industry are competing with analog ICs, power management ICs, microcontrollers, and sensors used by consumer and industrial products 1 . Many of these devices are fabricated on 200 mm wafers where a shortage of capac- ity remains. SEMI reports that 200 mm fabs will increase from 197 in 2019 to 215 in 2022. e number of 300 mm fabs will increase from 121 to 151 over the same period 2 . Ten of the new 300 mm fabs will begin operating in 2021, with14 more in 2022. Industry experts gener- ally agree that while double booking is caus- ing some of the shortage, trade friction is also a stronger contributor. Over the last two quar- ters, major fabless companies have moved their traditional designs out of fabs located in China. • Companies continue to order in excess, for example, Apple, Tesla—next gen 4/5 nm nodes • e ongoing semiconductor shortage, driven by a confluence of factors, includ- ing inadequate capacity and stronger-than- expected demand, has highlighted supply chain vulnerability • Some chip customers are making upfront payments to secure supply • e electrification of automobiles (EV) has contributed to the chip shortage 3 Silicon Wafer Shortages Wafer supply constraints are an increas- ing concern. TECHCET reports that 300 mm prime wafer demand will be at >99% utiliza- tion through 2022. Epitaxial capacity is also in the 99% range. Global 300 mm wafer pro- duction capacity will need to be expanded by 6% or more over the next two years to avoid a shortage in meeting the current 300 mm wafer shipment forecast. Several companies have announced investment plans. MEMC Elec- tronic Materials, a subsidiary of Taiwanese company GlobalWafers, will invest $210 mil- lion for 300 mm wafer production in its Mis- souri facility. SK Siltron is expected to expand wafer production as early as this year. e expansion will be the first in four years since SK Group acquired LG Siltron and expanded its Gumi plant in 2017. Shinetsu and Sumco, the world's number one and number two play- ers have announced plans to expand their facilities. Continued Taiwan Semiconductor Technology Dominance • TSMC fabs are the most advanced on the planet. Intel uses TSMC for advanced nodes • TSMC continues to invest heavily ($100 billion) over the next few years to grow capacity • Taiwan maintains edge as largest base for IC wafer capacity • TSMC supplies 50 to 55% of global semi- conductor output offering leading edge nodes which enable everything from the latest smartphone models to graphics processing units used in data centers and Al applications Advanced Nodes Coming from Asia; NA Suppliers Playing Catch-up • NA nodes lagging 28 nm, 10 nm, and 7 nm • NA headquartered fabs are lagging in state-of-the-art nodes Analysts expect the most problematic semiconductor shortages will end in 2022, although UMC and Intel do not see an end until 2023.