As soaring demand for AI chips and regionalisation initiatives keep fuelling, investments in 300mm fab equipment across the globe are poised to touch $400 billion in the next two years.
Worldwide investment in 300mm fabrication equipment is projected to hit $400 billion between 2025 and 2027, according to a report published by SEMI. This surge in spending is primarily driven by the regionalisation of semiconductor fabs and the rising demand for artificial intelligence (AI) chips used in data centres and edge devices.
In 2024, spending on 300mm fab equipment is expected to grow by 4% to $99.3 billion, with a substantial jump of 24% to $123.2 billion in 2025, marking the first time it surpasses the $100 billion threshold.
It has been forecasted that an 11% increase to $136.2 billion in 2026, followed by a 3% rise to $140.8 billion in 2027.
Commenting on the matter, Ajit Manocha, SEMI’s President and CEO, stated, “This sets the stage for a record-setting three-year period of semiconductor manufacturing investments.”
Regionally, China is set to remain the top spender on 300mm equipment, investing over $100 billion by 2027, despite a projected decline from $45 billion in 2024 to $31 billion by 2027.
Korea is the second-largest investor, with $81 billion to enhance its memory segment dominance, while Taiwan is expected to invest $75 billion, driven by advancements in leading-edge logic technologies below 3nm.
The Americas will contribute $63 billion, with Japan, Europe, and Southeast Asia anticipated to invest $32 billion, $27 billion, and $13 billion, respectively.
Due to policy incentives addressing semiconductor supply concerns, all regions are expected to more than double their investments by 2027 compared to 2024.
In terms of segments, foundry equipment spending is projected to total around $230 billion from 2025 to 2027, bolstered by investments in advanced technologies and mature nodes.
The Logic and Micro segment is expected to lead this expansion with $173 billion, while Memory investments will exceed $120 billion, signalling the start of a new growth cycle.
Manocha noted further, “The world’s ubiquitous need for chips is boosting spending on equipment for both leading-edge technologies addressing AI applications and mature technologies driven by automotive and IoT applications.”
