MILPITAS, Calif. — March 19, 2024 — 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 by 2025 on the strength of the memory market recovery and strong demand for high-performance computing and automotive applications, SEMI highlighted today in its quarterly 300mm Fab Outlook Report to 2027 report.
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.
“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 US$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 US$28 billion in 2027, up from US$20.3 billion in 2024, while Korea is expected to rank third at US$26.3 billion in 2027, an increase 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 are expected to reach US$11.4 billion, US$11.2 billion, and US$5.3 billion in 2027, respectively.
Segment Growth
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 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 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$41.5 billion in equipment investments in 2027, a 20% CAGR from 2023. DRAM equipment spending is expected to rise to US$25.2 billion in 2027, a 17.4% CAGR, while 3D NAND investment is projected to reach US$16.8 billion in 2027, a 29% CAGR.
The Analog, Micro, Opto, and Discrete segments are projected to increase 300mm fab equipment investments to US$5.5 billion, US$4.3 billion, US$2.3 billion, and US$1.6 billion in 2027, respectively.
The SEMI 300mm Fab Outlook Report to 2027 report lists 405 facilities and lines globally, including 75 high-probability facilities expected to start operation during the four years beginning in 2024. The report reflects 358 updates and 26 new fabs/lines project since its last publication in December 2023.
For more information on the report or to subscribe to SEMI market data, visit SEMI Market Data or contact the SEMI Market Intelligence Team (MIT) at [email protected].
About SEMI
SEMI® is the global industry association connecting over 3,000 member companies and 1.5 million professionals worldwide across the semiconductor and electronics design and manufacturing supply chain. We accelerate member collaboration on solutions to top industry challenges through Advocacy, Workforce Development, Sustainability, Supply Chain Management and other programs. Our SEMICON® expositions and events, technology communities, standards and market intelligence help advance our members’ business growth and innovations in design, devices, equipment, materials, services and software, enabling smarter, faster, more secure electronics. Visit www.semi.org, contact a regional office, and connect with SEMI on LinkedIn and X to learn more.
Association Contacts
Michael Hall/SEMI
Phone: 1.408.943.7988
Email: [email protected]
Christian G. Dieseldorff/SEMI US
Phone: 1.408.943.7940
Email: [email protected]
Chih-Wen Liu/SEMI Taiwan
Phone: 886.3.560.1777
Email: [email protected]
Themed Sensorizing Our World: Technology Driving Global Solutions, MSTC 2024 will feature keynotes and technical sessions on critical MEMS and sensors topics. Highlights also include posters showcasing novel applications from the next generation of innovators and networking opportunities for participants to help grow their businesses.
Themed Boosting Agility and Resiliency of the Global Electronics Supply Chain, SEMICON Southeast Asia 2024 will feature more than 500 exhibiting companies and more than 1,000 booths, doubling participation from last year’s exhibition and conference. The exponential expansion underscores the rising interest in Southeast Asia's semiconductor sector and the increasing importance of SEMICON Southeast Asia, the region’s premier global electronics manufacturing and supply chain event, in bringing industry stakeholders together to pursue new innovation and growth opportunities.
Beginning their two-year terms immediately, the new SCC Governing Council members join those elected last year in guiding the Consortium in its mission to reduce greenhouse gas emissions across the global semiconductor value chain. The Council convenes regularly to ensure the SCC is on track to fulfill its vision.
Established more than 30 years ago, the SEMI European Award and Special Service Award recognize key players in the global manufacturing supply chain, highlighting their leadership excellence and strategic contributions that lead to critical advances in the semiconductor industry.
“This award serves as a testament to the hard work, dedication, and collaboration of an incredible partnership with SEMI and all our partners,” said Slimani. “I am grateful for this remarkable acknowledgment. I firmly believe that by partnering and engaging in the Catalyze program, we can drive the necessary changes for our industry to contribute to a more environmentally sustainable planet. The Schneider Electric team takes pride in being part of this transformation.”
Dr. Raaijmakers’ outstanding career and leadership was pivotal in the research, development and commercialization of Atomic Layer Deposition (ALD) and Plasma-enhanced ALD (PEALD) equipment and processes, technologies that shaped and continue to influence the semiconductor industry. The ingenuity of ASM’s Finnish ALD and Korean PEALD groups and integrating their innovations into a worldwide product portfolio drove the market success of the two technologies. Dr. Raaijmakers joined ASM in 1996 and served as CTO from 1999 through 2022.
SEMI today published 
Themed Key Strategies for Europe’s Success: An Evolving Global Landscape, ISS Europe will highlight economic, technology, market, business, and geopolitical developments influencing the global electronics manufacturing industry as well as their implications for strategic business decisions.
Boosted by rising worldwide demand for semiconductors, China is expected to increase its share of global semiconductor capacity 13% year-over-year to 8.6 million wafers per month (wpm) in 2024, with Chinese chip manufacturers starting operations of 18 projects, as SEMI announced in its latest SEMI