Spending on 300 mm fab equipment is forecast to reach a record $400 billion from 2025 to 2027, according to new data from SEMI.
The spending is driven by the global regionalization of semiconductor fabs as well as the increased demand for artificial intelligent (AI) chips used across numerous sectors.
300 mm fab equipment spending will grow by 4% this year to reach $99.3 billion and then further increase by a whopping 24% in 2025 to a record $123.2 billion — the first time it will surpass the $100 billion level, SEMI said.
The following years will be even better as spending grows 11% to $136.2 billion in 2026 followed by a 3% increase in 2027 to $140.8 billion.
"The magnitude of the expected ramp of global 300 mm fab equipment spending in 2025 sets the stage for a record-setting three-year period of semiconductor manufacturing investments," said Ajit Manocha, SEMI President and CEO. "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."
Big spender
China is forecast to remain as the top spending region on 300 mm equipment worldwide through 2027, SEMI said. The country will invest more than $100 billion alone in the next three years as its ramps up its domestic self-sufficiency policies. The country will spend the most this year — at about $45 billion — with a gradual decrease in spending through 2027 when it will buy $31 billion worth of equipment.
Not surprisingly, Korea will be the second highest spender of 300 mm equipment, investing about $81 billion in the next three years as it ramps up DRAM, high-bandwidth memory and 3D NAND flash fabs. Taiwan will be third overall in spending on 300 mm equipment with a forecast of $75 billion over the next three years.
The Americans will be fourth with $63 billion in the forecast period, followed by Japan, Europe and the Middle East with spending of $32 billion, $27 billion and $13 billion, respectively.
Fueling investment
While AI chips is certainly one key area for growth, in the sub-3 nm cutting edge nodes investment in 2 nm logic processes and gate-all-around (GAA) transistor structure and back-side power delivery. These edge technologies will be needed for AI applications to meet high-performance and energy-efficient computing needs, SEMI said.
Other segment growth will be seen in the following areas:
- 22 nm and 28 nm processes for automotive and IoT
- 3D NAND
- Compound semiconductors
- Analog and mixed signal ICs
- Optoelectrical and sensor chips
