Global Semiconductor Equipment Sales Expected to Hit $156 Billion by 2027, According to SEMI Report
Record Growth in Semiconductor Equipment Sales
According to a SEMI report presented at SEMICON Japan 2025, the total sales of semiconductor manufacturing equipment are projected to achieve a remarkable $156 billion by 2027. This surge represents a significant growth trajectory, indicating an emphasis on cutting-edge technologies, particularly artificial intelligence (AI), from 2025 onward. While sales reached an impressive $133 billion in 2025, this momentum is expected to continue into the following years, with anticipated growth reaching $145 billion in 2026.
Key Drivers of Growth
The primary factors contributing to this growth are investments in advanced logic and memory technologies, as well as state-of-the-art packaging applications driven largely by AI demands. Ajit Manocha, president and CEO of SEMI, remarked, "Global semiconductor equipment sales show robust momentum, with both the front-end and back-end segments projected to see three consecutive years of growth, culminating in total sales surpassing $150 billion for the first time in 2027."
Segment Performance
The wafer fab equipment (WFE) segment, which includes essential components such as wafer processing and fab facilities equipment, is projected to exceed the previous forecasts. Following a record sales figure of $104 billion last year, WFE is likely to grow 11% to $115.7 billion in 2025. This increase comes as a result of stronger-than-expected investments in memory technologies essential for AI computing and a continued capacity build-out in regions like China.
As for the back-end equipment segment, marked recovery since 2024 is projected to solidify, with semiconductor test equipment sales expected to skyrocket by 48.1% to $11.2 billion in 2025. Assembly and packaging equipment will also see promising growth, bolstering the back-end segment profoundly.
Applications Driving Demand
Wafer fab equipment sales directed at foundries and logic applications will witness substantial year-over-year growth, projected at 9.8% to $66.6 billion in 2025. This uptick is expected to reflect a robust demand for advanced nodes, indicating that chipmakers are investing heavily in AI accelerators and high-performance computing technology. Notably, the memory-related capital expenditures are set for significant expansions, driven by the ongoing rollout of high-bandwidth memory (HBM) technology needed for AI applications.
Regional Insights
China remains the dominant player in the semiconductor equipment spending landscape, with Taiwanese investments reflecting large-scale developments in leading-edge tech, specifically for AI. South Korea's contribution to the landscape is supported by extensive investments in advanced memory technologies. As for the broader market, equipment spending across various regions is anticipated to increase in 2026 and 2027, driven by government incentives and strategic expansions.
Conclusion
The semiconductor industry is undergoing a transformative phase, fueled by advancements in AI and the compatibility of diverse technologies. SEMI’s projections not only underline the profound growth expected in semiconductor equipment sales over the next few years but also highlight the evolving landscape of technology in a global context. With collaborations and innovations at the forefront, the semiconductor sector is undoubtedly set for unprecedented growth in these upcoming years.
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