Record $137 Billion Forecast In Global 300mm Fab Equipment Spending By 2027, Says SEMI

In a significant development for the semiconductor industry, the latest report from SEMI, a global industry association, forecasts a surge in global 300mm fab equipment spending. By 2027, expenditures are expected to hit a record US$137 billion, marking a historic milestone as spending surpasses US$100 billion for the first time by 2025. This growth is attributed to the recovery of the memory market and robust demand across high-performance computing and automotive applications.

The SEMI quarterly 300mm Fab Outlook Report to 2027 reveals an anticipated 20% increase in investment to US$116.5 billion in 2025, followed by a 12% rise to US$130.5 billion in 2026, culminating in the record-breaking figure in 2027. Ajit Manocha, SEMI President and CEO, emphasized that this upward trajectory reflects the expanding production capacity required to cater to the burgeoning demand for electronics. He also highlighted the emergence of new applications driven by artificial intelligence (AI) innovations.

Moreover, the report underscores the vital role of government investments in semiconductor manufacturing. Such financial injections are deemed crucial for bolstering economies and enhancing security on a global scale. This trend is poised to significantly reduce the equipment spending gap between re-emerging and emerging regions and Asia's historically top-spending regions.

China is projected to lead fab equipment spending with US$30 billion annually over the next four years, spurred by government incentives and policies aimed at domestic self-sufficiency. Taiwan and Korea are also ramping up their investments in response to the expansion of leading-edge nodes for high-performance computing (HPC) and the memory market's revival. Taiwan's spending is expected to reach US$28 billion in 2027, up from US$20.3 billion in 2024, while Korea's investment is forecasted at US$26.3 billion in 2027, an increase from US$19.5 billion this year.

The Americas region is set to double its 300mm fab equipment investments from US$12 billion in 2024 to US$24.7 billion in 2027. Similarly, investments in Japan, Europe & the Middle East, and Southeast Asia are anticipated to reach US$11.4 billion, US$11.2 billion, and US$5.3 billion respectively by 2027.

The foundry segment, despite a forecasted 4% decline to US$56.6 billion this year due to an expected slowdown in mature nodes (>10nm) investment, continues to experience significant growth. This segment is driven by market demand for generative AI, automotive, and intelligent edge devices, with equipment spending predicted to achieve a 7.6% compound annual growth rate (CAGR) reaching US$79.1 billion from 2023 to 2027.

Memory technology investment is witnessing strong demand for high-bandwidth memory (HBM), crucial for AI servers. The memory segment is ranked second with an expected US$79.1 billion in equipment investments by 2027, marking a 20% CAGR from 2023. Specifically, DRAM equipment spending is set to rise to US$25.2 billion in 2027 (17.4% CAGR), while 3D NAND investment is projected at US$16.8 billion (29% CAGR).

The Analog, Micro, Opto, and Discrete segments are also seeing increased investments with projections of reaching US$5.5 billion, US$4.3 billion, US$2.3 billion, and US$1.6 billion respectively by 2027.

The SEMI report lists a total of 405 facilities and lines globally, including 75 high-probability facilities expected to commence operations within the four years starting in 2024. This reflects an update of 358 facilities and the addition of 26 new fabs/lines projects since its last publication in December 2023.

For further details on this comprehensive outlook or to subscribe to SEMI market data, interested parties can visit SEMI Market Data or reach out directly to the SEMI Market Intelligence Team at [email protected].