Analysis |

Global 300mm fab equipment spending to reach record $119B in 2026

Global 300mm fab equipment spending for front-end facilities next year is expected to begin a growth streak to a USD 119 billion record high in 2026 following a decline in 2023, SEMI reports.

Strong demand for high-performance computing, automotive applications and improved demand for memory will fuel double-digit spending in equipment investments over the three-year period.

After the projected 18% drop to USD 74 billion this year, global 300mm fab equipment spending is forecast to rise 12% to USD 82 billion in 2024, 24% to USD 101.9 billion in 2025 and 17% to USD 118.8 billion in 2026.

“The projected equipment spending growth wave underscores the strong secular demand for semiconductors,” said Ajit Manocha, SEMI President and CEO. “The foundry and memory sectors will figure prominently in this expansion, pointing to demand for chips across a wide breadth of end markets and applications.”

Regional Growth

Korea is expected to lead global 300mm fab equipment spending in 2026 with USD 30.2 billion in investments, nearly doubling from US$15.7 billion in 2023. Taiwan is forecast to invest USD 23.8 billion in 2026, up from USD 22.4 billion this year, and China is projected to log USD 16.1 billion in spending in 2026, an increase from USD 14.9 billion in 2023. Americas equipment spending is expected to nearly double from USD 9.6 billion this year to USD 18.8 billion in 2026.

Segment Growth

Foundry is projected to lead other segments in equipment spending at USD 62.1 billion in 2026, an increase from USD 44.6 billion in 2023, followed by memory at USD 42.9 billion, a 170% increase from 2023. Analog spending is forecast to increase from USD 5 billion this year to USD 6.2 billion in 2026. The microprocessor/microcontroller, discrete (mainly power devices), and optoelectronics segments are expected to see spending declines in 2026, while investments in logic is forecast to rise. 

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July 23 2024 1:29 am V22.5.13-2