Forecast for Semiconductor Equipment Spending Until 2028
SEMI Projects Semiconductor Equipment Spending to Grow
In a recent report, SEMI forecasted that global spending on 300mm fab equipment will exceed a staggering $374 billion from 2026 to 2028. This surge in investment is fundamentally driven by the rapid advancements in artificial intelligence (AI) technologies and a robust commitment to regional self-sufficiency.
The Driving Forces Behind Increased Spending
The anticipated investments mark a significant shift in the semiconductor landscape as demand for AI-enabled technologies surges. As chip manufacturers seek to innovate within data centers and edge applications, the strategic investments are poised not only to enhance existing infrastructure but also to prepare it for the challenges of tomorrow.
As AI continues to permeate various sectors, the need for advanced semiconductor solutions becomes increasingly important. Ajit Manocha, President and CEO of SEMI, captured this shift by stating, "The semiconductor industry is entering a pivotal era of transformation, driven by unprecedented demand for AI-enabled technologies and a renewed focus on regional self-sufficiency." He emphasized the essential need for strategic global investments that bolster advanced supply chains and expedite the adoption of next-generation manufacturing technologies.
Anticipated Growth Across Segments
The report indicates that the Logic & Micro segment will dominate equipment investments, reaching an expected total of $175 billion between 2026 and 2028. Foundries will be crucial in driving this growth, particularly due to the demand for sub-2nm chip production. Enhanced technologies such as gate-all-around (GAA) architecture will play pivotal roles in improving chip efficiency and performance, catering to the rigorous demands of AI applications.
Additionally, the Memory segment is projected to incur $136 billion in investments during the same period. Notably, DRAM equipment spending is expected to surpass $79 billion, while 3D NAND will attract $56 billion. This investment is propelled by the growing demand for high-bandwidth memory (HBM), crucial for AI training and inference, which requires superior data transmission speed and low latency.
Regional Insights into Spending Trends
When examining the geographical distribution of spending, it is clear that China will lead the market with projected investments of around $94 billion, driven by self-sufficiency policies. Korea follows closely, with an anticipated $86 billion investment, which supports robust demand from the global generative AI sector.
Furthermore, Taiwan, poised in third place, is set to invest about $75 billion, focusing heavily on enhancing its capacity in 2nm and sub-2nm chip technologies. The Americas are anticipated to earmark $60 billion, reflecting the U.S. suppliers' push to amplify their advanced process capacities to match the explosive demand from AI applications.
Emerging Trends and Projections
Overall, the semiconductor industry is navigating through a critical juncture characterized by transformative changes and prioritization of regional supply chains. Countries like Japan and various regions in Europe and Southeast Asia will also contribute, with combined investments projected to be substantial, particularly in policies aimed at stimulating semiconductor production and equipment investments.
As the industry evolves and expands, SEMI underscores the importance of staying informed on emerging technologies and collaborative opportunities that positions member companies for success. For further insights and projections regarding these trends, companies and stakeholders are encouraged to explore SEMI's extensive market data resources.
Frequently Asked Questions
What is the projected spending on semiconductor equipment by 2028?
The projected spending on semiconductor equipment is expected to reach $374 billion from 2026 to 2028.
Which segment is expected to lead in investments?
The Logic & Micro segment is projected to lead, with an expected investment of $175 billion during this period.
How does AI influence semiconductor investments?
AI significantly drives demand for advanced semiconductors, making it crucial for manufacturers to invest in cutting-edge technologies and infrastructure.
Which regions are expected to see the highest equipment spending?
China, Korea, and Taiwan are projected to lead in spending, with China expected to invest around $94 billion, followed by Korea with $86 billion and Taiwan with $75 billion.
What other segments are forecasted for growth?
The Memory segment is also set for growth, with projections of $136 billion in investments over the next three years, largely due to increased demand for DRAM and 3D NAND technologies.
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