Investment in 12-inch (300 mm) fab (semiconductor production plant) equipment is expected to surpass US$100 billion by 2025 and reach US$137 billion by 2027.
The International Semiconductor Equipment and Materials Association (SEMI) reported on March 20 in its “300 mm Fab Outlook” that investment in 300 mm fab equipment is expected to increase by 20% to US$116.5 billion in 2025 and by 12% to US$140.5 billion in 2026, maintaining a growth rate of 5% in 2027.
Ajith Manocha, CEO of SEMI, explained, “The demand for electronic products is increasing across various markets. The launch of new applications due to AI innovation is driving the increase in investment in 300 mm fab equipment.”
He added, “Governments are promoting investments to strengthen the competitiveness of their semiconductor industries. This trend is expected to narrow the gap between regions that have been hesitant to invest in semiconductors and major Asian countries that are making significant investments.”
China is expected to lead the increase in global fab equipment investment, investing US$30 billion annually over the next four years, driven by government incentives and policies on internalizing manufacturing facilities.
Taiwan’s investment in 300 mm fab equipment is expected to rise from US$20.3 billion this year to US$28 billion by 2027, making it the second-largest in total investment size, while Korea’s investment is anticipated to increase from US$19.5 billion dollars this year to US$26.3 billion, ranking third.
Investment in the North American region is expected to more than double from US$12 billion this year to US$24.7 billion by 2027. Japan, Europe, the Middle East, and Southeast Asia are projected to reach investments of US$11.4 billion, US$11.2 billion, and US$5.3 billion, respectively, in 2027.
By sector, investment in foundry 300 mm fab equipment is expected to decrease by 4% to US$55.6 billion, but with an average annual growth rate of 7.6%, it is projected to reach US$79.1 billion in 2027, driven by the market demand for generative AI, automotive semiconductors, and advanced devices.
The memory sector’s investment in 300 mm fab equipment, spurred by high bandwidth memory (HBM) demand, is expected to show an average annual growth rate of 20% from last year to 2027, reaching US$79.1 billion.
Specifically, DRAM equipment investment is predicted to reach US$25.2 billion by 2027, with an average annual growth rate of 17.4% from 2023 to 2027. NAND investment is forecast at US$16.8 billion, with an average annual growth rate of 29% from 2023 to 2027.
Investment in analog, microcomponents, optoelectronics, and discrete semiconductors is expected to reach US$5.5 billion, US$4.3 billion, US$2.3 billion, and US$1.6 billion, respectively, in 2027.