The global semiconductor equipment industry is entering a major expansion phase, according to the latest outlook by SEMI. Between 2026 and 2028, spending on equipment for 300 mm wafer factories (300 mm fabs) is projected to total US $374 billion—a figure underscoring the strong momentum in advanced manufacturing and AI-driven demand.
In 2025, investment for 300 mm fabs already crossed the US $100 billion threshold (approximately US $107 billion, up about 7 % year-on-year). The forecast shows further growth: about US $116 billion in 2026, US $120 billion in 2027, and US $138 billion in 2028.
Driving Factors
Several key trends are underpinning this surge. First, the proliferation of AI workloads—particularly data-centre training, inference, edge devices and automotive AI—are creating massive demand for both logic and memory chips. As SEMI notes, “the global expansion of 300 mm fabs will enable progress in data centres, edge devices and the digital economy.”
Second, foundries and memory makers are pushing for advanced nodes (such as sub-2 nm logic), requiring more and higher-end equipment. For example, the Logic & Micro segment is expected to absorb about US $175 billion from 2026-28, while the Memory segment (including DRAM and 3D NAND) is projected at around US $136 billion.
Third, regional diversification of manufacturing is becoming ever-more important—governments and companies alike are emphasising local supply-chains, regional fab construction, and mitigation of geopolitical/chain-risk issues. This “fab regionalisation” is cited as a major theme in SEMI’s report.
Regional & Segment Breakdown
In terms of geography, China is expected to invest about US $94 billion in 300 mm fab equipment over 2026-28, followed by Korea (~US $86 billion), Taiwan (~US $75 billion) and the Americas (~US $60 billion).
Segment-wise: Logic & Micro (US $175 billion) leads, Memory (US $136 billion) follows. Other segments such as analog (US $41 billion) and power/compound semiconductors (US $27 billion) also see sizable investment.
Implications for Equipment & Manufacturing Suppliers
For equipment suppliers, this means strong demand for advanced lithography, etch, deposition, inspection tools and process integration services. For fabs and foundries, achieving cost efficiency across 300 mm wafer formats remains critical, even as the industry explores 200 mm, 450 mm and beyond. The emphasis on 300 mm here reflects its mature infrastructure yet large headroom for next-generation logic and memory.
Manufacturers of materials, substrates, chemicals, and process tools should monitor the regional build-out plans closely—especially in China, Korea and Taiwan—because capacity additions will create ripple effects throughout the ecosystem.
Looking Ahead
The forecast suggests that the 300 mm ecosystem will remain the bedrock of high-volume logic and memory manufacturing for the foreseeable future. As AI workloads proliferate, demand for high-bandwidth memory, high-density 3D NAND and advanced logic nodes will keep tooling investment elevated. Meanwhile, the push for localisation of supply chains may open opportunities in new geographies.
However, companies will need to watch cost-inflation, tool-delivery bottlenecks, and regional policy changes carefully. With such large sums at stake, strategic timing and alignment with fab-build announcements will matter.
