Global Spending on 300mm Fab Equipment Set to Reach All-Time High Driven by High-Performance Computing and Automotive Demand

According to the latest report by SEMI, global spending on front-end facilities' 300mm fab equipment is anticipated to commence a sequential growth next year and reach an unprecedented peak of $119 billion in 2026. 

The forecast comes after an estimated 18% decline in 2023 due to the ongoing chip shortage, as the semiconductor industry adapts to the situation. Nevertheless, the future years are expected to witness an increase in spending driven by robust demand for high-performance computing, automotive applications, and improved demand for memory. 

Leading the equipment spending among various segments, the foundry sector is projected to reach $62 billion in 2026, up from $44.6 billion in 2023. The memory segment is expected to be the second-largest spender, with a projected spending of $42 billion in 2026, compared to $15.4 billion in 2023. 

Additionally, other segments such as analogue, microprocessor/microcontroller, discrete (primarily power devices), and optoelectronics are also expected to experience growth, albeit at a slower pace. 

The growth drivers behind this positive outlook include the escalating demand for high-performance computing, particularly fueled by the increasing utilization of artificial intelligence and machine learning across a wide array of applications, necessitating more powerful chips. 

Another significant catalyst for growth is the automotive industry, as the rising adoption of electric vehicles and self-driving cars creates a demand surge for advanced semiconductors.