Global 300mm Fab Equipment Investment to Reach $374 Billion by 2028, SEMI Reports

SEMI Reports Projected Investment in 300mm Fab Equipment

In a newly released report by SEMI at SEMICON West, it was unveiled that global spending on 300mm fab equipment is set to surge dramatically, reaching an impressive $374 billion from 2026 to 2028. This significant investment highlights an evolving industry landscape shaped by heightened demand for AI chips and a concentrated push for semiconductor self-sufficiency across various regions.

The Rise of Global Fab Equipment Spending

The 300mm equipment spending is anticipated to achieve a milestone, surpassing $100 billion for the first time in 2025, marking a crucial turning point for the semiconductor sector. The forecast shows a steady growth trajectory, with expenditures projected to increase by 9% to $116 billion in 2026, then further rising to approximately $138 billion by 2028. The drive towards regional self-sufficiency means local industrial ecosystems and supply chain restructuring are at the forefront of this investment surge.

Pivotal Changes in the Semiconductor Landscape

Ajit Manocha, the President and CEO of SEMI, stated, "The semiconductor industry is entering a pivotal era of transformation, driven by unprecedented demand for AI-enabled technologies and a renewed focus on regional self-sufficiency." This statement underscores how strategic global investments and collaboration are enabling advanced supply chains and expediting the deployment of cutting-edge semiconductor manufacturing technologies.

Distinct Segment Growth Projections

Diving deeper into the sector's dynamics, the Logic Micro segment is predicted to dominate the growth landscape with a cumulative investment of $175 billion between 2026 and 2028. Foundries are identified as the main drivers, fueled by the demand for sub-2nm capacity expansions, facilitated by advanced technologies such as gate-all-around (GAA) architecture. This innovation is crucial for optimizing chip performance and energy efficiency in the face of growing AI workload demands.

Furthermore, further advancements in 1.4nm technology are expected to transition into mass production by the 2028-2029 phase. The remarkable elevation in AI capabilities is also set to catalyze massive growth in edge device applications—ranging from automotive electronics to Internet of Things (IoT) solutions and robotics.

The Memory segment is projected to be a close runner-up, with anticipated spending of $136 billion from 2026 to 2028, signaling the initiation of a new growth cycle. Significant investment from DRAM-related equipment is expected to top $79 billion, while 3D NAND investment will likely reach $56 billion. The increased demand from AI training and inference tasks is significantly boosting requirements across various memory types.

Regional Investment Insights

On a regional level, China is expected to lead in 300mm equipment spending with a staggering $94 billion from 2026 to 2028. This growth stems from the nation’s robust self-sufficiency policies. South Korea follows closely, projected to invest $86 billion, catering to global generative AI demands. Meanwhile, Taiwan aims for a $75 billion investment, mainly focused on advancing 2nm and sub-2nm capacities.

The Americas are set to contribute $60 billion, bolstering U.S. suppliers' expansion of advanced process capabilities to accommodate the burgeoning AI applications. Meanwhile, Japan, Europe, and Southeast Asia are projected to invest $32 billion, $14 billion, and $12 billion respectively.

Conclusion

SEMI's comprehensive data indicates that these investments will fortify the semiconductor industry, driving immense growth in advanced manufacturing while tackling existing supply chain issues. The commitment to localizing production capabilities in response to global demand illustrates a pivotal shift within the semiconductor landscape.