MILPITAS, CA – Global 300mm fab equipment spending for front-end facilities is forecast to reach a record $137 billion in 2027 after topping $100 billion for the first time by 2025, SEMI highlighted in its quarterly 300mm Fab Outlook Report to 2027 report.

Driven by the strength of the memory market recovery and strong demand for high-performance computing and automotive applications, worldwide 300mm fab equipment investment is expected to increase 20% to $116.5 billion in 2025 and 12% to $130.5 billion in 2026 before hitting a record high in 2027.

"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.

Regional Growth

The SEMI 300mm Fab Outlook to 2027 report shows China continuing to lead fab equipment spending with $30 billion in investments in each of the next four years fueled by government incentives and domestic self-sufficiency policies.

Supported by leading-edge nodes expansion for high-performance computing (HPC) and the memory market recovery, Taiwanese and Korean chip suppliers are increasing their equipment investments. Taiwan is expected to rank second in equipment spending at $28 billion in 2027, up from $20.3 billion in 2024, while Korea is expected to rank third at $26.3 billion in 2027, an increase from $19.5 billion this year.

The Americas is projected to double 300mm fab equipment investments from $12 billion in 2024 to $24.7 billion in 2027, while spending in Japan, Europe & the Middle East and Southeast Asia are expected to reach $11.4 billion, $11.2 billion and $5.3 billion in 2027, respectively.

Segment Growth

Foundry segment spending is expected to decline 4% to $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 to meet market demand for generative AI, automotive and intelligent edge devices. The segment’s equipment spending is forecast to post a 7.6% compound annual growth rate (CAGR) to $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 $79.1 billion in equipment investments in 2027, a 20% CAGR from 2023. DRAM equipment spending is expected to rise to $25.2 billion in 2027, a 17.4% CAGR, while 3-D NAND investment is projected to reach $16.8 billion in 2027, a 29% CAGR.

The Analog, Micro, Opto, and Discrete segments are projected to increase 300mm fab equipment investments to $5.5 billion, $4.3 billion, $2.3 billion and $1.6 billion in 2027, respectively.