Your next AI-powered device may arrive sooner than expected—and behind it will be record-breaking investments in memory chip manufacturing.
According to SEMI, worldwide spending on 300mm wafer fabrication equipment for the memory sector is projected to exceed $50 billion for the first time in 2026, rising 29% year-on-year to $52 billion. Investment is expected to climb another 11% to $57 billion in 2027, driven by surging demand for AI infrastructure, cloud data centers and next-generation computing systems.
The strong outlook reflects the rapid adoption of artificial intelligence, which is fueling demand for advanced memory technologies such as high-bandwidth memory (HBM) and DDR5. Over the longer term, SEMI expects 300mm memory fab equipment spending to grow at a 19% compound annual growth rate (CAGR) between 2024 and 2029. Global 300mm memory production capacity is also forecast to increase, reaching 4.1 million wafers per month in 2026 and **4.2 million wafers per month in 2027.
According to SEMI President and CEO Ajit Manocha, expanding AI infrastructure is reshaping investment priorities across the semiconductor industry, with memory manufacturers accelerating both capacity expansion and technology migration to support increasingly data-intensive AI applications.
The report also highlights strong growth across both major memory segments. DRAM equipment spending is expected to surge 29% to $37 billion in 2026, supported by rising demand for HBM and DDR5 used in GPUs and AI accelerators. Meanwhile, 3D NAND equipment spending is projected to increase 28% to $14 billion, driven by growing storage requirements for AI workloads and cloud computing.
Despite the increase in investment, capacity expansion is expected to remain gradual as manufacturers transition to more complex process technologies, including advanced-node DRAM, HBM and higher-layer 3D NAND. These technology migrations improve performance but also slow the pace of effective capacity additions.
The latest edition of SEMI’s 300mm Fab Outlook tracks 413 wafer fabrication facilities and production lines worldwide. Compared with its March 2026 release, the report includes 155 project updates and seven newly announced fabs or production lines, reflecting continued momentum in global semiconductor manufacturing investment.
