Surging AI demand is powering a global semiconductor boom, with advanced chip capacity and investments in next-gen nodes like 2nm accelerating at record-breaking speeds.
The global semiconductor industry is set for robust growth, with the 300mm wafer capacity to grow at a compound annual growth rate (CAGR) of 7% from the end of 2024 to 2028, reaching an all-time high of 11.1 million wafers per month (wpm).
As predicted by a recent report by SEMI, generative artificial intelligence (AI) will drive significant investment in advanced manufacturing.
The report highlighted that central to this growth is the rapid expansion of advanced process capacity, particularly at 7nm and below, which is expected to increase by 69% over the same period.
Capacity at these nodes is projected to rise from 850,000 wpm in 2024 to 1.4 million wpm in 2028, representing a 14% CAGR—twice the industry average.
AI’s demand for powerful training capabilities and inference at the edge is fuelling the surge. This demand is further strengthened by AI integration into system software and devices such as augmented reality or virtual reality (AR/VR) headsets and humanoid robots.
In 2025 alone, advanced node capacity is forecast to rise to 982,000 wpm, a 15% YoY increase. The industry is expected to surpass one million wpm in 2026, reaching 1.16 million. Meanwhile, 2nm and smaller nodes will see more dramatic growth, from under 200,000 wpm in 2025 to over 500,000 wpm by 2028.
Investment in advanced fab equipment is also accelerating. Capital expenditure on such equipment is projected to soar from US$26 billion in 2024 to over US$50 billion in 2028, an 18% CAGR and a 94% total increase. Growth spikes are anticipated in 2025 and 2027, at 33% and 21% respectively.
Funding for 2nm and below tools alone is expected to more than double, surging from US$19 billion in 2024 to US$43 billion by 2028—a staggering 120% increase. Mass production of 2nm chips is forecast for 2026, with 1.4nm expected by 2028.
Ajit Manocha, SEMI President and CEO, said AI remains a key catalyst for transformation. “The rapid proliferation of AI applications is stimulating robust investment across the semiconductor ecosystem,” he stated.
