Global 300mm fab equipment spending for front-end facilities is forecast to reach a record US$137 billion in 2027, after topping US$100 billion for the first time in 2025, driven by the memory market recovery and strong demand for high-performance computing and automotive applications, according to SEMI.
Worldwide 300mm fab equipment investment is expected to increase 20% to US$116.5 billion in 2025 and 12% to US$130.5 billion in 2026, before hitting a record high in 2027, SEMI predicted in its quarterly 300mm Fab Outlook Report to 2027 report.
"Projections for the steepening ramp of 300mm fab equipment spending in the coming years reflects the production capacity needed to meet growing demand for electronics across a diverse range of markets as well as a new wave of applications spawned by artificial intelligence (AI) innovation," said Ajit Manocha, SEMI president and CEO. "The newest SEMI report also highlights the critical importance of increases in government investments in semiconductor manufacturing to bolster economies and security worldwide. This trend is expected to help significantly narrow the equipment spending gap between re-emerging and emerging regions and the historical top-spending regions in Asia."
By region
China is expected to maintain its leading position in fab equipment spending, investing US$30 billion in each of the following four years, thanks to government incentives and domestic self-sufficiency plans, according to the SEMI 300mm Fab Outlook to 2027 report.
Chip suppliers in Taiwan and Korea are boosting their equipment investments, fueled by the rise of leading-edge nodes for high-performance computing (HPC) and the revival of the memory industry. Taiwan is anticipated to rank second in equipment spending in 2027, with US$28 billion, up from US$20.3 billion in 2024, and Korea third, with US$26.3 billion, up from US$19.5 billion this year.
The Americas is projected to double 300mm fab equipment investments from US$12 billion in 2024 to US$24.7 billion in 2027, while spending in Japan, Europe & the Middle East, and Southeast Asia will reach US$11.4 billion, US$11.2 billion, and US$5.3 billion in 2027, respectively.
By segment
Foundry segment spending is expected to decline 4% to US$56.6 billion this year, due in part to the expected slowdown in mature nodes (>10nm) investment, though the segment continues to log the highest growth among all segments. The segment's equipment spending is forecast to post a 7.6% compound annual growth rate (CAGR) to US$79.1 billion from 2023 to 2027.
Demand for greater data throughput, crucial for AI servers, is driving strong demand for high-bandwidth memory (HBM) and spurring increased investment in memory technology. Among all segments, memory is ranked second and is expected to post US$79.1 billion in equipment investments in 2027, a 20% CAGR from 2023.
DRAM equipment spending is forecast to increase to US$25.2 billion in 2027, a 17.4% CAGR, while 3D NAND investment is expected to reach US$16.8 billion in 2027, a 29% CAGR.
The analog, micro, opto, and discrete segments are expected to expand 300mm fab equipment investments to US$5.5 billion, US$4.3 billion, US$2.3 billion, and US$1.6 billion, respectively, in 2027.
