Advanced chip capacity to surge 69% by 2028 on AI demand
The global semiconductor industry is expected to significantly expand its advanced manufacturing capacity through 2028, driven by accelerating demand for artificial intelligence applications, according to SEMI’s latest 300mm Fab Outlook report.
The report states that the global semiconductor manufacturing industry is expected to maintain strong momentum, with capacity projected to grow at a compound annual growth rate (CAGR) of 7% from the end of 2024 through 2028, reaching a record high of 11.1 million wafers per month (wpm).
A major contributor to this growth is the expansion of advanced process capacity (7nm and below), which is forecast to increase by approximately 69% – from 850,000 wpm in 2024 to 1.4 million wpm in 2028. This corresponds to a 14% CAGR, twice the overall industry average.
"AI continues to be a transformative force in the global semiconductor industry, driving significant expansion of advanced manufacturing capacity," said SEMI President and CEO Ajit Manocha, in a press release. "The rapid proliferation of AI applications is stimulating robust investment across the semiconductor ecosystem, underscoring the industry's pivotal role in fostering technology innovation and meeting the surging demand for advanced chips."
Advanced manufacturing capacity is projected to grow by 15% year-on-year in 2025 to reach 982,000 wpm, passing the one million mark in 2026 and reaching 1.16 million wpm. Capacity for 2nm and smaller nodes is expected to scale rapidly during the same period, rising from under 200,000 wpm in 2025 to more than 500,000 wpm by 2028.
SEMI also expects substantial increases in capital investment. Expenditures on advanced process equipment are projected to reach over USD 50 billion in 2028, up from USD 26 billion in 2024 – an 18% CAGR. Investment in wafer equipment for 2nm and below nodes is forecast to more than double over the same period, from USD 19 billion to USD 43 billion.
