Global chip industry to invest $400 billion in 300mm fab equipment

Global spending on 300mm fab equipment is expected to reach a record USD 400 billion from 2025 to 2027, driven by the regionalization of semiconductor fabs and rising demand for AI chips used in data centers and edge devices, according to a report by SEMI.

Worldwide, 300mm fab equipment spending is forecast to increase by 4% to USD 99.3 billion in 2024, and further grow by 24% to USD 123.2 billion in 2025, surpassing the USD 100 billion level for the first time. Spending is projected to see an 11% increase to USD 136.2 billion in 2026 followed by a 3% growth to USD 140.8 billion in 2027, SEMI’s quarterly 300mm Fab Outlook Report to 2027 says.

SEMI is an industry association representing the global electronics manufacturing and design supply chain.

“The magnitude of the expected ramp of global 300mm fab equipment spending in 2025 sets the stage for a record-setting three-year period of semiconductor manufacturing investments,” said Ajit Manocha, SEMI President and CEO. “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.”

China is expected to remain the top spending region on 300mm equipment until 2027, investing over USD 100 billion in the next three years driven by its national self-sufficiency policies. However, spending is projected to gradually decrease from a peak of USD 45 billion in 2024 to USD 31 billion by 2027, a media release quoting the report said.

South Korea is forecast to rank second and invest USD 81 billion in the next three years to further its dominance in memory segments including DRAM, HBM and 3D NAND Flash. Taiwan is forecast to spend USD 75 billion on 300mm equipment over the next three years, ranking third as the region’s chipmakers build some new fabs overseas. Leading-edge logic below 3nm is the primary driver of Taiwan fab investments.

The Americas is projected to invest USD 63 billion from 2025 to 2027, while Japan, Europe and Mideast and SE Asia are expected to spend USD 32 billion, USD 27 billion and USD 13 billion, respectively, over the three-year period. These regions are anticipated to more than double their equipment investment in 2027 compared to 2024 due to policy incentives earmarked to alleviate concerns on the supply of crucial semiconductors, the media release said.

Foundry equipment spending is projected to reach approximately USD 230 billion between 2025 and 2027, fueled by investments in sub-3nm cutting-edge nodes as well as continued spending on mature nodes.  

The Logic and Micro segment is projected to spearhead the equipment spending expansion over the next three years, with an anticipated total investment of USD 173 billion. Memory comes in second, expected to contribute over USD 120 billion in spending during the same period, marking the beginning of another segment growth cycle. Within Memory, investment in DRAM-related equipment is projected to surpass USD 75 billion, while investment in 3D NAND is expected to reach USD 45 billion.

The Power-related segment ranks third, with an expected investment of over USD 30 billion over the next three years, including around USD 14 billion for compound semiconductor projects. The Analog and Mixed-signal segment is projected to reach USD 23 billion during the same period followed by Opto/Sensors at USD 12.8 billion.