SEMI Report: Global 300mm Fab Equipment Spending Expected to Reach $374 Billion Over the Next Three Years

On October 8, 2025, local time in Phoenix, Arizona, USA, SEMI unveiled its latest "300mm Fab Outlook" report at SEMICON West. The report projects that global equipment spending for 300mm fabs will reach $374 billion from 2026 to 2028. This robust investment reflects the growing trend of fab regionalization, as well as the surging demand for AI chips used in data centers and edge devices. At the same time, it underscores the ongoing commitment of key global regions to advancing semiconductor self-sufficiency by reshaping local industry ecosystems and supply chains.

Global equipment spending for 300mm fabs is expected to surpass $100 billion for the first time in 2025, growing by 7% to reach $107 billion. The report forecasts that investments will rise by 9% in 2026, climbing to $116 billion; increase by 4% in 2027, reaching $120 billion; and jump by 15% in 2028, hitting $138 billion.

SEMI President and CEO Ajit Manocha stated: "The semiconductor industry is entering an era of unprecedented transformation, driven by the surging demand fueled by AI technologies and a renewed focus on regional autonomy. Global strategic investments and collaborations are accelerating the development of advanced supply chains, paving the way for the rapid deployment of next-generation semiconductor manufacturing technologies. Meanwhile, the global expansion of 300mm fabs will propel advancements in data centers, edge devices, and the broader digital economy."

Sector Growth

The Logic and Micro sectors are expected to lead with total equipment investments of US$175 billion between 2026 and 2028. Driven primarily by the construction of production capacities for processes below 2nm, foundries will serve as the key growth engine. Key technologies such as Gate-All-Around (GAA) transistor architectures and backside power delivery techniques are at the core of enhancing chip performance and energy efficiency, enabling them to meet the ever-growing demands of AI workloads. Meanwhile, the more advanced 1.4nm process is anticipated to enter mass production between 2028 and 2029. Additionally, the ongoing advancements in AI performance will also fuel rapid market expansion in edge devices—including automotive electronics, IoT, and robotics. Beyond cutting-edge processes, demand across all technology nodes is set to rise significantly, further boosting investment in mature-process equipment.

Memory is expected to rank second with $136 billion in spending over the next three years, marking the beginning of a new growth cycle in this sector. Specifically, investments in DRAM-related equipment are projected to exceed $79 billion, while 3D NAND investments will reach $56 billion. Meanwhile, AI training and inference are driving a comprehensive surge in demand for various types of memory. AI training requires higher data transfer bandwidth and ultra-low latency, significantly boosting the need for high-bandwidth memory (HBM), whereas model inference is generating higher-quality, more diverse AI-generated digital content, thereby increasing demand for end-user storage capacity—and ultimately fueling growth in 3D NAND Flash. This robust demand is poised to sustain elevated levels of supply-chain investment in the medium to long term, helping to mitigate the potential downturns typically associated with conventional storage cycles.

The analog-related sector is expected to see investments exceeding $41 billion over the next three years.

Power-related sectors, including compound semiconductors, are expected to see $27 billion in investments between 2026 and 2028.

Regional Growth

Mainland China is expected to continue leading global spending on 300mm equipment, with total investments reaching US$94 billion between 2026 and 2028, driven by the ongoing support of national policies.

South Korea is expected to rank second globally with an investment of $86 billion, driving global demand for generative AI.

Taiwan, China, is expected to invest $75 billion within three years, ranking third, with investments primarily focused on 2nm and smaller process technologies to maintain its leadership in the advanced foundry sector.

America is expected to invest $60 billion between 2026 and 2028, moving into fourth place. U.S. suppliers are expanding their advanced manufacturing capacity to meet the surging demand from AI applications, while simultaneously driving upgrades in the domestic industry.

Japan, Europe, the Middle East, and Southeast Asia are expected to invest $32 billion, $14 billion, and $12 billion, respectively. Policy incentives aimed at addressing critical issues in the semiconductor supply chain are projected to boost equipment investments in these regions by more than 60% between 2024 and 2028.

(Source: SEMI)