Semiconductor Industry Flourishes with Record Investments in Manufacturing

view original post

The semiconductor industry has experienced an unprecedented surge in investment in manufacturing over the past decade, with an average annual capex growth of 30%, reveals a recent report by JLL. The study highlights a substantial increase in capital expenditures (Capex) as a percentage of revenue, soaring from 13.4% in 2018 to 18.5% in 2022. This trend signifies a heightened emphasis on expanding production capacity, as semiconductor companies strive to meet the escalating demand.

JLL’s prepared release underlines the close correlation between this surge in investment and the growing need for physical space. Capex expenditures often involve acquiring new manufacturing facilities or state-of-the-art equipment, demonstrating a strategic commitment to augmenting operational capabilities.