Global investment in 300mm fab equipment is forecasted to hit a record $400billion between 2025 and 2027, according to SEMI’s latest 300mm Fab Outlook Report to 2027.
This surge in spending is largely driven by the growing demand for artificial intelligence (AI) chips used in data centres and edge devices, as well as the regionalisation of semiconductor manufacturing.
In 2024, global spending on 300mm fab equipment is projected to rise by 4%, reaching $99.3billion. This growth is expected to continue with a 24% increase to $123.2billion in 2025, breaking the $100billion mark for the first time. By 2026, spending is predicted to grow by 11% to $136.2billion, with an additional 3% increase bringing the total to $140.8billion in 2027.
Ajit Manocha, SEMI President and CEO, commented: “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. 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.”
Regional spending trends
China is set to remain the leading region for 300mm fab equipment investment through 2027, with over $100billion projected for the next three years. This is driven by the country’s push for self-sufficiency in semiconductors. However, China’s spending is expected to decrease from a peak of $45billion in 2024 to $31billion by 2027.
Korea is anticipated to be the second-largest investor, with $81billion in spending over the next three years. This investment will primarily support Korea’s dominance in memory segments, such as DRAM, high-bandwidth memory (HBM), and 3D NAND Flash. Taiwan ranks third, with an expected $75billion in spending, driven largely by investments in leading-edge logic below 3nm as Taiwanese chipmakers expand internationally.
In the Americas, spending is projected to reach $63billion between 2025 and 2027. Japan, Europe & the Middle East, and Southeast Asia are forecasted to invest $32billion, $27billion, and $13billion, respectively, during this period. These regions are expected to more than double their equipment investments by 2027 compared to 2024, boosted by policy incentives aimed at addressing semiconductor supply concerns.
Segment growth
Foundry equipment spending is predicted to reach approximately $230billion between 2025 and 2027. This growth is driven by investment in sub-3nm cutting-edge nodes and continued spending on mature processes. Critical technologies such as 2nm logic processes, gate-all-around (GAA) transistor structures, and backside power delivery will be essential to meet future high-performance and energy-efficient computing demands, particularly for AI applications.
Additionally, demand for cost-effective 22nm and 28nm processes is expected to rise, driven by the need for automotive electronics and IoT applications.
The Logic and Micro segment is expected to lead the expansion, with total equipment investment projected to reach $173billion over the next three years. Memory is forecasted to follow, with an expected $120billion in spending, marking the start of another growth cycle. Within the Memory segment, DRAM-related equipment investment is anticipated to surpass $75billion, while 3D NAND equipment spending is expected to reach $45billion.
The Power-related segment ranks third, with investments exceeding $30billion, including $14billion allocated to compound semiconductor projects. The Analog and Mixed-Signal segment is forecasted to reach $23billion, followed by Opto/Sensors at $12.8billion.
Fab capacity expansion
As part of the SEMI Fab Forecast database, the 300mm Fab Outlook Report to 2027 covers 420 facilities and production lines globally, including 79 high-probability fabs expected to commence operations between 2024 and 2027. The latest report reflects 169 updates and nine new fab projects since the previous publication in June 2024.
These expansions are expected to fuel the next wave of semiconductor manufacturing, supporting growing demands across AI, automotive, IoT, and other sectors while addressing critical supply chain challenges faced by the industry.
