Paul van Gerven
20 March

Global 300mm fab equipment spending for front-end facilities is forecast to reach a record 137 billion dollars in 2027 after topping 100 billion dollars for the first time by 2025, Semi predicts in its quarterly 300mm Fab Outlook Report. Worldwide investment is expected to increase 20 percent to 116.5 billion dollars in 2025 and 12 percent to 130.5 billion dollars in 2026 before hitting a record high in 2027.

“Projections for the steepening ramp of 300mm fab equipment spending in the coming years reflect the production capacity needed to meet the growing demand for electronics across a diverse range of markets as well as a new wave of applications spawned by artificial intelligence innovation,” says Semi CEO Ajit Manocha. “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.”

Semi 300mm spending
300mm equipment spending (fabs with probability > 50%). Source: 300mm Fab Outlook Report to 2027, 1Q24 Update, published by Semi

The Fab Outlook to 2027 shows China continuing to lead fab equipment spending with 30 billion dollars in investments in each of the next four years fueled by government incentives and domestic self-sufficiency policies. Supported by leading-edge node 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 28 billion dollars in 2027, up from 20.3 billion dollars in 2024, while Korea is expected to come in third at 26.3 billion dollars in 2027, an increase from 19.5 billion dollars this year.

The Americas are projected to double 300mm fab equipment investments from 12 billion dollars in 2024 to 24.7 billion dollars in 2027, while spending in Japan, Europe & the Middle East and Southeast Asia are expected to reach 11.4 billion, 11.2 billion and 5.3 billion dollars in 2027, respectively.

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