Global Semiconductor Industry Plans to Invest $400 Billion in 300mm Fab Equipment

Part of the SEMI Fab Forecast database, the SEMI 300mm Fab Outlook Report to 2027 report lists 420 facilities and lines globally, including 79 high-probability facilities expected to start operation during the four years beginning in 2024.

SEMI in its quarterly 300mm Fab Outlook Report to 2027 report has highlighted that Global spending on 300mm fab equipment is expected to reach a record US$400 billion from 2025 to 2027. The robust spending is being driven by the regionalization of semiconductor fabs and the increasing demand for artificial intelligence (AI) chips used in data centers and edge devices.

Worldwide, 300mm fab equipment spending is projected to grow by 4% to US$99.3 billion in 2024, and further increase by 24% to US$123.2 billion in 2025, surpassing the US$100 billion level for the first time. Spending is forecast to experience 11% growth to US$136.2 billion in 2026 followed by a 3% increase to US$140.8 billion in 2027.

"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," said Ajit Manocha, President and CEO, SEMI.

China is expected to remain the largest spender on 300mm semiconductor equipment globally through 2027, investing over US$100 billion in the next three years, fueled by its push for self-sufficiency. However, its spending is set to decline from a peak of US$45 billion in 2024 to US$31 billion by 2027. Korea will follow, investing US$81 billion to strengthen its lead in memory sectors like DRAM, high-bandwidth memory (HBM), and 3D NAND Flash. Taiwan is projected to invest US$75 billion, ranking third, driven by investments in cutting-edge logic chips below 3nm and the construction of new fabs abroad.

The Americas is projected to invest US$63 billion from 2025 to 2027, while Japan, Europe & Mideast, and SE Asia are expected to spend US$32 billion, US$27 billion, and US$13 billion, respectively, over the three-year period. Notably, 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.

Foundry equipment spending is projected to reach approximately US$230 billion between 2025 and 2027, fueled by investments in sub-3nm cutting-edge nodes as well as continued spending on mature nodes. Investment in 2nm logic processes and development of key technologies at 2nm, such as gate-all-around (GAA) transistor structure and back-side power delivery technology, is crucial to meet future high-performance and energy-efficient computing needs, particularly for AI applications. Cost-effective 22nm and 28nm processes are expected to see growth due to increasing demand for automotive electronics and IoT applications.

The Logic and Micro segment is projected to spearhead the equipment spending expansion over the next three years, with an anticipated total investment of US$173 billion. The Power-related segment ranks third, with an expected investment of over US$30 billion over the next three years, including around US$14 billion for compound semiconductor projects. The Analog and Mixed-signal segment is projected to reach US$23 billion during the same period followed by Opto/Sensors at US$12.8 billion.