Equipment sales are expected to reach $165.9 billion this year as chipmakers increase investments in AI, advanced memory, and leading-edge manufacturing.
Global semiconductor manufacturing equipment sales are projected to reach $165.9 billion in 2026 and rise to $229.5 billion by 2028, according to SEMI’s latest mid-year forecast.
The market is expected to grow 23.2% in 2026, marking its fifth consecutive year of expansion. The growth is being driven by increasing investment in artificial intelligence, advanced logic, high-bandwidth memory (HBM), and advanced packaging technologies.
Wafer fabrication equipment will remain the largest segment, with spending expected to reach $143.9 billion in 2026. Semiconductor test equipment sales are projected to grow 31% to $15.3 billion, while assembly and packaging equipment are also expected to benefit from rising demand for AI computing, hyperscale data centres, automotive electronics, and edge devices.
Ajit Manocha, President and CEO of SEMI, said the demand for more powerful and efficient chips is accelerating investment across the semiconductor capital equipment industry. He added that chipmakers are increasing spending on leading-edge logic, advanced memory, testing, and packaging capabilities to support AI growth.
The global investment cycle comes as India accelerates its semiconductor ambitions. The government has approved 12 projects spanning semiconductor fabs, assembly and testing facilities, OSAT units, compound semiconductor manufacturing, and display production, with planned investments exceeding $20 billion.
SEMI said initiatives including the Semicon India Programme, Production-Linked Incentive scheme, Electronics Manufacturing Clusters, and IndiaAI Mission are supporting the development of India’s semiconductor and electronics ecosystem.
Ashok Chandak, President of SEMI India, said the global equipment investment cycle aligns with India’s semiconductor mission and could create opportunities across fabs, OSAT facilities, equipment, materials, automation, and precision engineering.
China, Taiwan, and South Korea are expected to remain the largest semiconductor equipment markets through 2028. While China is expected to retain the top position, Taiwan’s spending will be supported by AI-driven advanced logic demand, and South Korea’s investment will be driven by advanced memory production, including HBM.
