Double-digit growth in global 300mm fab equipment spending for 2026 and 2027

This strong growth reflects surging AI chip demand for data centres and edge devices, as well as the growing commitment to semiconductor self-sufficiency across key regions through localised industrial ecosystems and supply chain restructuring.

Looking further out, the report projects investment will continue to increase 3% to USD 155 billion in 2028 and another 11% to USD 172 billion in 2029, respectively.

"AI is resetting the scale of semiconductor manufacturing investment," said Ajit Manocha, President and CEO of SEMI, in a press release. "With global 300mm fab equipment spending projected to exceed $150 billion in 2027 for the first time, the industry is making historic, sustained commitments to the advanced capacity and resilient supply chains needed to power the AI era."

The Logic & Micro segment is expected to spearhead equipment expansion with USD 228 billion in total investments from 2027 to 2029 mainly due to strong foundry sector demand, driven by sub-2nm cutting-edge capacity investments. 

The memory segment is projected to rank second in equipment spending, totalling USD 175 billion from 2027 to 2029. This period marks the start of a new growth cycle for the segment. Within the memory category, DRAM equipment spending is expected to reach USD 111 billion cumulatively from 2027 to 2029, while 3D NAND equipment spending is estimated to be USD 62 billion during the same time frame.

The demand for memory has significantly increased due to AI training and inference. AI training has notably driven up the demand for High Bandwidth Memory (HBM), while model inference has created substantial demand for storage capacity, thus boosting the growth of NAND Flash applications in data centres. 

Regional investment trends

Global 300mm fab equipment investment is expected to remain broadly distributed across the major semiconductor manufacturing regions from 2027 to 2029, reflecting a mix of advanced-node expansion, memory capacity additions, and policy-supported supply chain localisation. China, Taiwan, Korea, and the Americas are each expected to see substantial levels of spending during the period, while Japan, Europe & the Middle East, and Southeast Asia also continue to expand investment from a smaller base.

In China, investment is expected to remain supported by ongoing domestic capacity expansion and national initiatives aimed at strengthening semiconductor manufacturing capabilities. In the Taiwan region, spending is projected to be driven primarily by the continued expansion of leading-edge foundry capacity, including 2nm and sub-2nm technologies. Korea's investment outlook remains closely tied to the memory sector, where AI-related demand is supporting another cycle of capacity and technology upgrades. In the Americas, spending is expected to be underpinned by advanced process expansion and broader efforts to strengthen domestic manufacturing ecosystems.