300mm fab equipment spending forecast to rise to record levels by 2027: SEMI report

MILPITAS — Global 300mm fab equipment spending for front-end facilities is forecasted to reach a record US$137 billion in 2027 after topping US$100 billion for the first time by 2025 on the strength of the memory market recovery and strong demand for high-performance computing and automotive applications, SEMI highlighted on Mar. 19 in its quarterly 300mm Fab Outlook Report to 2027 report.

Worldwide 300mm fab equipment investment is expected to increase 20% to US$116.5 billion in 2025 and 12% to US$130.5 billion in 2026 before hitting a record high in 2027.

“Projections for the steepening ramp of 300mm fab equipment spending in the coming years reflects the production capacity needed to meet growing demand for electronics across a diverse range of markets as well as a new wave of applications spawned by artificial intelligence (AI) innovation,” said Ajit Manocha, SEMI President and CEO. “The newest SEMI report also highlights the critical importance of increases in government investments in semiconductor manufacturing to bolster economies and security worldwide. This trend is expected to help significantly narrow the equipment spending gap between re-emerging and emerging regions and the historical top-spending regions in Asia.”

Regional Growth

The SEMI 300mm Fab Outlook to 2027 report shows China continuing to lead fab equipment spending with US$30 billion in investments in each of the next four years fueled by government incentives and domestic self-sufficiency policies.

Supported by leading-edge nodes expansion for high-performance computing (HPC) and the memory market recovery, Taiwanese and Korean chip suppliers are increasing their equipment investments. Taiwan is expected to rank second in equipment spending at US$28 billion in 2027, up from US$20.3 billion in 2024, while Korea is expected to rank third at US$26.3 billion in 2027, an increase from US$19.5 billion this year.