Worldwide 300mm semiconductor fab equipment spending is entering a sustained growth phase, driven by accelerating demand for artificial intelligence (AI) chips and ongoing efforts to localize semiconductor supply chains. According to the latest outlook from SEMI, global investment is projected to rise 18 percent to $133 billion in 2026, followed by a further 14 percent increase to $151 billion in 2027.
The momentum is expected to continue beyond 2027, with spending forecast to grow 3 percent to $155 billion in 2028 and then surge 11 percent to reach $172 billion by 2029. This trajectory highlights a structural shift in semiconductor manufacturing, as AI-driven workloads in data centers and edge devices reshape capacity requirements and investment strategies.
Ajit Manocha, CEO of SEMI, noted that AI is fundamentally redefining the scale of chip manufacturing investments. The industry is now committing unprecedented capital to expand advanced-node capacity and build more resilient, geographically diversified supply chains.
Logic and Micro Segment Leads Investment Surge
The Logic and Micro segment is expected to dominate equipment spending, with total investments projected at $228 billion between 2027 and 2029. Growth in this segment is largely fueled by strong demand from foundries investing in sub-2nm technologies, which are critical for improving chip performance and energy efficiency in AI applications.
As advanced nodes move into volume production during this period, they will enable next-generation AI workloads while also supporting the rapid expansion of edge AI devices. At the same time, steady demand across mature nodes will ensure continued investment across a broad range of semiconductor applications.
Memory Segment Enters New Growth Cycle
The memory segment is set to become the second-largest contributor, with cumulative spending of $175 billion from 2027 to 2029. This marks the beginning of a new investment cycle, underpinned by rising AI-driven demand.
Within the segment, DRAM equipment spending is expected to reach $111 billion, while 3D NAND is projected to account for $62 billion over the same period. The surge in AI training workloads is significantly boosting demand for High Bandwidth Memory, while inference applications are driving the need for higher storage capacity, accelerating NAND Flash adoption in data centers.
This strong demand is helping stabilize the traditionally cyclical memory market, ensuring more consistent investment across the supply chain.
Regional Investments Reflect Global Supply Chain Shift
From 2027 to 2029, 300mm fab equipment investments will remain broadly distributed across major semiconductor regions, reflecting a combination of advanced-node expansion, memory capacity growth, and government-backed localization initiatives.
China is expected to sustain high investment levels through domestic capacity expansion and national semiconductor strategies. Taiwan will continue to lead in advanced-node manufacturing, particularly in 2nm and sub-2nm technologies. Korea’s outlook remains closely tied to memory, with AI demand driving new capacity and technology upgrades.
In the Americas, investment will be supported by efforts to strengthen domestic semiconductor ecosystems and expand advanced manufacturing capabilities. Meanwhile, Japan, Europe and the Middle East, and Southeast Asia are also set to record steady growth, backed by policy incentives and supply chain resilience initiatives.
AI Drives Long-Term Semiconductor Investment Boom
The rapid rise of AI is reshaping the semiconductor industry’s investment landscape, pushing spending to historic highs. With global 300mm fab equipment investment expected to surpass $150 billion in 2027 for the first time, the industry is entering a new era of sustained capital expansion.
BABURAJAN KIZHAKEDATH
