89 fabs by 2030, 50 more by 2035: chip industry spreads risk through global collab

The surge in AI infrastructure investment is set to propel global semiconductor output past the $1 trillion mark by 2026, accelerating industry globalization with over 139 new fabs planned up until 2035. Technologically, this drives advancements in advanced packaging and heterogeneous integration, stimulating innovation among material and equipment suppliers. On the regulatory front, heightened scrutiny over semiconductor supply chains, particularly under US export controls targeting Taiwan, China, and South Korea, compels multinationals to diversify their supplier base for resilience. In terms of market dynamics, giants like Intel and Samsung may increase investments domestically and in allied nations while also acquiring smaller innovative firms to strengthen their competitive edge. Over the next two years, despite potential short-term oversupply concerns, long-term growth remains robust, fueled by rising demands from emerging sectors such as autonomous driving and IoT.